PB Fintech’s Healthcare Arm To Rake In INR 1,461 Cr In Seed Funding

As PB Fintech’s healthcare dreams take shape, the listed fintech major disclosed that its new healthcare subsidiary, PB Healthcare Services Pvt Ltd, will be raising INR 1,461.60 Cr ($166.01 Mn) from the parent and its partners as part of the first tranche of its seed funding round. This would mark a 76% increase from the last disclosed INR 829 Cr investment in March. 

The Policy Bazaar parent said that it has invested INR 539.40 Cr ($63.24 Mn) in the subsidiary out of the INR 696 Cr ($81.60 Mn) for which it received the shareholders’ nod.

The remainder of the investment will come via subscription or purchase of equity shares or CCPS in PB Healthcare within FY26. 

While the company hasn’t disclosed the names of the other investors that will participate in the round, it earlier disclosed that its cofounders Yashish Dahiya, Alok Bansal, along with three key managerial personnel, will invest INR 132.75 Cr for a combined 6.61% stake.

With the increase in the funding round size, PB Fintech’s stake in the subsidiary would decline from 100% to 32.14% on a fully diluted basis. PB Fintech also attributed the decline in its shareholding in the subsidiary to the creation of an ESOP pool. 

PB Fintech CEO Dahiya had earlier said that the company’s shareholding in the healthcare subsidiary would be limited to 25%. “PB Fintech is an incubator and a catalyst. It is not the long-term owner or driver of this project,” Dahiya said in an interview with CNBC TV18 last month. 

The fintech major set up its healthcare subsidiary in January 2025 with an authorised share capital of INR 2,500 Cr and a paid up capital of INR 5 Lakh. 

While there hasn’t been many disclosures from the fintech company, PB Healthcare aims to offer a seamless healthcare experience for policyholders, potentially including cashless services and eliminating the need for pre-authorisations or claim process.

The company estimated earlier that the venture could go live with its operations by December 2025, around five months after the first tranche of committed funds comes in. Meanwhile, Dahiya said it would take around four years to determine if PB Healthcare can truly transform healthcare in India.

However, the healthcare foray has also raised some concern. In October last year, brokerage firm Bernstein expressed caution over PB Fintech’s healthcare plans, noting that it would be a sharp departure from the company’s current asset-light model to a more asset-heavy space.

The company is expected to give more clarity on its healthcare foray in its disclosures for Q4 FY25.

PB Fintech’s shares ended today’s session 0.40% higher at INR 1,668.75 on the BSE.