Serum Institute Acquires Stake In Policybazaar; True North Sees Part Exit

Vaccine manufacturer Serum Institute Of India and four other entities have bought a stake in online insurance aggregator PolicyBazaar. They acquired a portion of homegrown private equity firm True North’s holding in the company. True North made a partial exit through the transaction.

True North had conducted the first tranche of its stake sale in October 2020 and continues to be invested in PolicyBazaar for its next phase of growth, according to a company statement released on Friday. This move comes at a time when PolicyBazaar is preparing for its initial public offering (IPO) in India. 

True North has sold a part of its holding, to a clutch of five independent buyers – vaccine maker Serum Institute of India (SII), Ashoka India Equity Investment Trust, Triumph Global Holdings, IIFL Special Opportunities Fund Series 8 and India Acorn Fund.

“We’ve had a great partnership with PolicyBazaar over the last three years. We are extremely pleased with the company’s sustained growth momentum and efficiency in delivering great results in spite of the challenging market conditions. We will continue to support PolicyBazaar as it heads towards public markets in the next 12-15 months and scripts many more success stories,” said Divya Sehgal, Partner, True North.

Yashish Dahiya, CEO, Policybazaar said that True North has been and continues to be a good advisor and has supported PolicyBazaar as an investor through the last few years. “We are grateful for that, and glad to see them having a good partial exit, we welcome on board the new shareholders,” said Dahiya.

In November 2020, Mumbai-based retail pharmacy chain Wellness Forever raised INR 130 Cr from Serum Institute CEO Adar Poonawalla and another investor. 

PolicyBazaar’s IPO Plans

Founded in 2008 by IIT Delhi and IIM Ahmedabad alumni Yashish Dahiya, Alok Bansal and Avaneesh Nirjar, PolicyBazaar is an online platform allowing users to purchase insurance policies, ranging from life insurance to car insurance and even two-wheeler insurance. It aggregates products from all major insurance companies in India.

According to data on Crunchbase, to date, the company has raised $766.6 Mn in 13 funding rounds from 22 investors. Its most recent funding round was in March 2021, when it raised a $75 Mn private equity round led by Falcon Edge Capital.

As per latest reports, PolicyBazaar could file its draft prospectus for an IPO in India by as early as next month. The company is seeking to raise around $500 Mn from its initial listing in India, but Dahiya has previously said that the company is open to a dual listing if the rules change. Several Indian tech startups such as Zomato, InMobi, Flipkart, Droom, Grofers and Delhivery, are planning to go for IPOs this year.