Policybazaar Files DRHP, Plans To Raise INR 6,017 Cr Via IPO

Fintech unicorn and online insurance aggregator PB Fintech Ltd, the parent company of online insurance platform Policybazaar, has filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) to raise INR 6,017.50 Cr via an initial public offering (IPO).

PB Fintech also operates Paisabazaar, a credit aggregator. The IPO will comprise a fresh issue of INR 3,750 Cr worth of equity shares and an offer for sale (OFS) of INR 2,267.50 Cr by existing shareholders and promoters. The OFS will see sale of up to INR 1,875 Cr worth of shares by SoftBank and up to INR 392.50 Cr by other investors and promoters, including cofounder and CEO Yashish Dahiya.

The company is backed by marquee investors such as SoftBank, Temasek, Info Edge, among others. It was founded in 2008 by IIT Delhi and IIM Ahmedabad alumni Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar. The company has raised $766 Mn from 22 investors till date and achieved unicorn status in 2018. 

In fiscal year FY21, the company reported INR 957.4 Cr in revenue and a loss of INR 150.2 Cr, which is half of the INR 304 Cr loss reported in FY20. Policybazaar reported a consolidated revenue of INR 855.5 Cr in the financial year that ended in March 2020 (updated as per DRHP disclosures), up from  higher than FY2019’s revenue INR 528.8 Cr. 

The company said it is in consultation with its book running lead managers for raising around INR 750 Cr by way of a private placement of equity shares ahead of the IPO. Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd, IIFL Securities and Jefferies India are the book running lead managers for the public issue.

Policybazaar is reportedly seeking a valuation of $5.5 Bn-$6 Bn.

Policybazaar IPO Roadmap

Many consider 2021 as a watershed year for the Indian startup ecosystem with a record number of unicorns emerging in the past seven months. The number of startups seeking to list has also grown in the past few months. After Info Edge-backed Zomato went public last month, fintech major Paytm, along with MobiKwik filed its DRHP. 

The next startup to go public will be automobile marketplace CarTrade, which will open its IPO subscription on August 9. 

In March, Policybazaar executed a secondary sale of shares worth about $45 Mn, with existing investors such as private equity firm True North and some individual investors selling their stake. The secondary round valued the company at $2.4 Bn. 

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