China’s Tencent Holdings has reportedly acquired a 10% stake in Indian online insurance aggregator Policybazaar.com.
The Chinese firm acquired the minority stake for $150m, valuing Policybazaar.com at $1.5bn, Bloomberg has reported citing sources familiar with the matter.
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The sources added that the agreement was signed earlier last week.
Apart from Tencent, US investor Tiger Global Management holds 20% stake in the insurance disruptor.
The move follows Tencent’s strategic investments in several Indian start-ups across industry verticals.
With the latest investment in Policybazaar.com, the company seeks to stabilise its footprint in India’s growing insurance sector.
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By GlobalDataHowever, the move was confirmed neither by Policybazaar nor Tencent.
Operated by ETech Aces Marketing and Consulting, Policybazaar allows users compare and buy life, health and auto insurance policies.
With a population of more than 1.3 billion, India had an insurance penetration level of just around 4% in 2017.
According to the government’s Brand Equity Foundation, the sector is estimated to grow fourfold over the next decade.
The Indian insurance sector is currently dominated by local conglomerates including Tata Group and Aditya Birla Group.
Earlier this year, the Government of India revealed plans to further open up the country’s insurance sector.
The move included increasing the foreign direct investment (FDI) in insurance intermediaries to 100% from existing limit of 49%.
