MUMBAI: PB Fintech Ltd, parent of online insurance platform Policybazaar, has filed a draft red herring prospectus with the Securities Exchange Board of India (Sebi) to raise Rs6,017.50 crore via an initial public offering (IPO).
The IPO comprises a fresh issue of Rs3, 750 crore worth of equity shares and an offer for sale of Rs2,267.50 crore by existing shareholders and promoters.
The OFS comprises sale of up to Rs1,875 crore worth of shares by SVF Python II (Cayman), Rs250 crore by Yashish Dahiya, Rs95 crore by Alok Bansal, Rs27.50 crore by Founder United Trust, Rs12.50 crore by Shikha Dahiya and Rs7.50 crore by Rajendra Singh Kuhar.
SVF Python II (Cayman) holds 9.45% stake, Yashish Dahiya holds 4.27% stake in the firm, Alok Bansal 1.45% stake in Policybazaar, which is backed by marquee investors such as Softbank, Temasek, Info Edge, among others.
The firm said it is in consultation with its book running lead managers for raising around Rs750 crore by way of a private placement of equity shares ahead of the IPO.
PB Fintech also holds Paisabazaar.com, which is an online credit comparison portal.
Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd, IIFL Securities and Jefferies India are the book running lead managers to the issue.
About Rs1,500 crore worth of proceeds from the issue will be used to enhance visibility and awareness of the brands, including but not limited to Policybazaar and Paisabazaar, Rs375 crore will be used for new opportunities to expand, to boost consumer base including offline presence, Rs600 crore will be used for funding strategic investments and acquisitions and Rs375 crore for expanding presence outside India.
“We plan to continue investing in our brands on mediums such as television, while also expanding our marketing presence to capture shifts in consumers’ media consumption habits, such as in social media, digital media and embedded advertisements”, the company said in a DRHP.
Policybazzar is India’s largest online platform for insurance and lending products leveraging the power of technology, data and innovation. It provides convenient access to insurance, credit and other financial products and aims to create awareness amongst Indian households about the financial impact of death, disease and damage.
In fiscal 2020, Policybazaar was India’s largest digital insurance marketplace with a 93.4% market share based on the number of policies sold. Furthermore, 65.3% of all digital insurance sales in India by volume was transacted through Policybazaar.
For FY21, 51 insurer partners have offered over 340 term, health, motor, home and travel insurance products on the Policybazaar platform, representing a substantial portion of all licensed insurance companies in India. In the same period, 3.7 million policies, representing 80.4% of the new policies sold through Policybazaar platform, were sold with minimal human assistance.
Paisabazaar was India’s largest digital consumer credit marketplace with a 51.4% market share, based on disbursals in fiscal 2020. Paisabazaar is also widely used to access credit scores, with approximately 21.5 million consumers cumulatively having accessed their credit score through its platform as of March 2021.In FY21 Paisabazaar enabled disbursals of ₹29.17 billion.
For fiscal 2021, Policybazaar reported revenue from operations of Rs886.66 crore against ₹771.30 crore a year ago. Net loss for the period narrowed to Rs150.02 crore from Rs3,040.03 crore a year ago.
The firm said as a result of the second wave of the pandemic in India and lockdowns and restrictions imposed in response, it experienced a decrease in demand for travel and other insurance products and lower disbursal of loans on its platforms during the quarter ended June 2021 which will lead to lower revenue during the period.
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