India-based PB Fintech has reportedly invested Rs3.5bn ($41.96m) in its wholly owned subsidiary Policybazaar, an insurance aggregator.
The latest move is expected to help Policybazaar strengthen its overall financial health to further meet general operating expenses, the Hindu Businessline report said.
This investment will also allow Policybazaar to carry out its strategic initiatives and boost its brand awareness and office presence.
A report in Inc42 Media cited PB Fintech’s stock exchange announcements as stating: “The company has invested Rs3.5bn against which 58,04,311 equity shares of Rs10 each at a premium of Rs593 per share of Policybazaar have been allotted.”
The regulatory filing confirmed that PB Fintech’s infusion is due to take place in one or more tranches over the fiscal years (FY) 2023–24 and FY 2024–25.
Established in September 2014, Policybazaar specialises in offering life, health and motor insurance from various insurers to its clients.
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The insurance aggregator is also engaged in the business of Insurance Broker Direct (Life and General).
During the FY 2022–23, Policybazaar recorded a turnover of Rs12.67bn as against Rs7.89bn in the previous fiscal year.
In December 2021, PB Fintech confirmed its plans to invest approximately Rs7bn in Policybazaar, gradually in multiple tranches over FY 2022 and FY 2023.
PB Fintech also had plans to invest Rs2.3bn in Paisabazaar Marketing and Consulting, a digital platform for consumer credit.
The move comes shortly after venture capital company Tiger Global divested a 2.98% stake worth Rs5.22bn in Policybazaar via open market transactions.