PB Fintech To Acquire Stake In UAE-Based Insurance Broker

SUMMARY

The Gurugram-based startup also received board nod to acquire 100% stake in UAE-based Genesis Group in a cash deal of INR 8.8 Cr

PB Fintech also received board approval to divest 29.3% stake, or 2.93 Lakh shares, in Visit Health Private Limited (VHPL) for INR 76 Cr

PB Fintech turned profitable in Q3 FY24 with a PAT of INR 37.2 Cr while operating revenues jumped 43% YoY to INR 871 Cr during the quarter

Insurtech major Policybazaar’s parent PB Fintech has received board approval to divest stakes in at least two subsidiaries and pick up shareholding in UAE-based insurance broker.

In a filing with the BSE, the company said that it has received a nod to divest 29.3% stake, or 2.93 Lakh shares, in Visit Health Private Limited (VHPL) for INR 76 Cr. It, however, added that PB Fintech will continue to retain 8.2% stake, or 1.22 Lakh shares in VHPL.

The insurtech major’s board also greenlit the proposal to offload the company’s entire shareholding in another arm Visit Internet Services Private Limited (“VISPL”) for INR 2 Cr.

The Gurugram-based startup also received board nod to acquire 100% stake in UAE-based Genesis Group owned by PB Fintech CEO Yashish Dahiya via YD Holdings) through the insurtech’s full-owned subsidiary Icall Support Services. The deal was pegged at INR 8.8 Cr, as per the filings.

It is pertinent to note that Genesis Group owns 49% stake in Dubai-based insurance broker Genesis Insurance Brokers. The strategic stake acquisition will enable PB Fintech to expand its local offerings in the UAE.

“… We hereby inform that the board of directors of PB Fintech Limited at its meeting… considered and approved… the acquisition of shares of Genesis Group Limited… at an aggregate consideration of AED 3,877,400. The enterprise value is AED 877,400 which is approximately INR 2 Cr,” said the company in a regulatory filing.

The acquisition deal is expected to be completed by the end of this month.

The development comes at a time when PB Fintech has been on an expansion spree. In March, it announced plans to incorporate a new wholly-owned subsidiary to enter the payment aggregation business.

Prior to that in February, PolicyBazaar Insurance Brokers also received an in-principle nod from the insurance regulator IRDAI to upgrade its licence, paving the way for its entry into the reinsurance business.

This comes close on the heels of PB Fintech turning profitable in the December quarter (Q3) of the financial year 2023-24 (FY24) with a profit after tax (PAT) of INR 37.2 Cr . It reported a loss of INR 21.1 Cr in the year ago period.

Meanwhile, the startup’s total operating revenue jumped 43% YoY to INR 871 Cr in the reported quarter.

Banking on healthy financial numbers, the stock of the company has been on an upward spiral. PB Fintech shares have surged by more than 110% in the past 12 months and 59.18% on a year-to-date (YTD) basis.

Shares of the company closed 2.18% higher at INR 1265.65 on the BSE on Wednesday.