The online insurance aggregator is said to be seeking a valuation of as much as $5 billion, up from $2.4 billion at the last funding round.
The Policybazaar IPO is expected to be a mix of fresh shares and an offer for sale, through which existing investors can exit. This is similar to
Paytm’s proposed public offer set for later this year.
PB Fintech is likely to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) soon eyeing a December listing, said people with knowledge of the matter. As with Paytm and
Zomato, the company indicated that it could hold a pre-IPO funding round, according to filings accessed by ET through business intelligence platform Tofler.
“The firm has hired three-four investment bankers to oversee the compliance process and is targeting a valuation of $4-5 billion,” said a source aware of the matter. “The management is eyeing an IPO launch before December 2021. They are also in advanced stages of finishing paperwork for filing the DRHP with Sebi.”
Policybazaar told ET that the company has no comment to offer.
The parent has passed a special resolution renaming itself PB Fintech Ltd. as part of converting into a public entity from a private one. In a separate filing, the company has altered its Articles of Association to smoothen its public listing in accordance with the Companies Act.
(Graphic: Rahul Awasthi/ETtech)
The company will have the option to retain oversubscription of up to 1% of the net offer. The offer could also include an offer for sale and the company said there could also be a pre-IPO private placement, the documents showed. The Gurgaon-based firm’s board had approved plans for an IPO at an extraordinary general meeting held on July 5.
The startup, which operates as a web aggregator for purchasing retail insurance, reported a loss of Rs 218 crore in FY20 against a loss of Rs 213 crore in the previous year. FY21 numbers are not out yet.
acquired an insurance broking licence from the Insurance Regulatory and Development Authority of India in June. This will allow Policybazaar to set up a physical network while also expanding product and service offerings significantly, including claims assistance and a point-of-sale network.
The startup announced its offline expansion as a broker in July, setting up 15 stores with plans to expand to 100 locations. The brick-and-mortar stores will serve as experience centres for customers, the company had said. The company also announced a new group health insurance program for SMEs, MSMEs and large corporates earlier this month.
Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar founded Policybazaar in June 2008. Investors include Japan’s SoftBank, private equity firm True North, Premji Invest, Tiger Global Management and Temasek.
raised Rs 9,375 crore in an IPO earlier this month. Paytm
has filed a DRHP for an IPO to raise Rs 16,600 crore in November. Mobikwik
has filed for a Rs 1,900 crore IPO later this year.
Policybazaar is one of India’s largest insurance marketplaces. Group subsidiaries include Paisabazaar.com, a b2b venture and ZPhin.com. The firm also has lending and insurance marketplace businesses in the United Arab Emirates.
In its last funding round, led by US-based Falcon Edge Capital, Policybazaar
raised $75 million at a valuation of $2.4 billion. The company had said that it will deploy the capital to expand its services in the UAE and West Asia.
Amid last year’s Sino-Indian border tension, Policybazaar CEO Dahiya had offered to buy back the 10% stake held by China’s Tencent in its holding company at the time. Policybazaar is yet to disclose specifics on the OFS or the pre-IPO placement, or about the investors expected to dilute stakes in the firm.