Tiger Global Sells 3.57% Stake In Policybazaar Parent Worth INR 606 Cr

US-based VC fund Tiger Global Management on Friday divested a 3.57% stake in Policybazaar’s parent firm PB Fintech through the open market. The VC fund sold 1.6 Cr shares at INR 374.09 – INR 388.34 apiece, amassing a little below INR 606 Cr.

As of Q2 FY23, Tiger Global held a 7.1% stake through its funds Tiger Global Eight Holdings and Internet Fund III. While the former sold a 2.84% stake, the latter sold a 0.73% stake in the open market.

The selling off of half of its stake comes only days after PB Fintech announced its financial statements for the quarter ending September 2022. 

PB Fintech reported a net loss of INR 186.5 Cr in Q2 FY23, an 8.6% YoY decline of INR 204.4 Cr in Q2 FY22. 

PB Fintech’s operating revenue more than doubled to INR 573.5 Cr in Q2 FY23 and its core businesses Paisabazaar and Policybazaar contributed most of it at INR 410 Cr – a 55% YoY growth. 

Following this, the shares of PB Fintech have been rising steadily and closed at INR 399.90 on the NSE, reaching the day’s (and the week’s) high of INR 402.30.

Overall, since its listing in November 2021, the share has wiped out nearly 60% of the market cap. It listed at an upper band of INR 980 and opened at INR 1,150.

Founded by IIT Delhi and IIM Ahmedabad alumni Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar in 2008, Policybazaar aggregates insurance policies from a range of providers for use-cases, including life insurance, automobile insurance, health insurance and more. 

On the other hand, Paisabazaar allows users to access their credit scores, along with aggregating financial products such as credit cards.

The company claims to hold more than 90% market share in the online policy aggregators segment with 60 Mn+ registered customers and 25 Mn+ policies sold to date.