PolicyBazaar in talks to raise new funds at $2 billion valuation
The new funding, which is a mixture of secondary and first capital, is predicted to worth PolicyBazaar’s mum or dad, ETechAces Marketing and Consulting, at $2 billion up from about $1.5 billion that it beforehand commanded, sources mentioned. ETechAces additionally operates the net lending market PaisaBazaar.
In a secondary transaction, AWI has already acquired shares price $20 million in the monetary know-how agency from an present investor– True North, a personal fairness fund. The main funding is but to be finalised.
“Falcon Edge has bought stakes from some existing investors and is in the process of being issued fresh equity in the company,” mentioned an individual with direct information of the event.
Yashish Dahiya, cofounder & group CEO, PolicyBazaar, confirmed the secondary sale of shares by True North nonetheless, he didn’t touch upon the first capital infusion by AWI.
Emailed queries despatched to Falcon Edge’s cofounder Navroz Udwadia and True North didn’t elicit a response until press time Sunday.
On October 30, True North, previously often known as India Value Fund, introduced in a press assertion that it had clocked a partial exit from PolicyBazaar. It didn’t reveal some other monetary particulars of the transaction. Prior to the stake sale, True North held a 3.31% stake in the corporate by Fund V and a pair of.48% by Fund VI.
Dahiya informed ET that the UAE is among the many prime geographies the place the fintech agency is trying to increase operations. The partnership with AWI is in that path, he mentioned.
“ Our revenue will be Rs 1,000 crore for financial year 2020-21.. and while PolicyBazaar will be profitable the overall company will still have about $5 million of losses..” he mentioned. Dahiya mentioned it might be “speculative to comment” on any IPO plan as “ nothing is board approved.”
“ We are keen on international expansion and homegrown Indian companies must test international areas as part of Atmanirbhar Bharat. It’s great our companies get to a stage where they can help customers abroad…,” he mentioned.
AWI, which manages a $300 million India-focused fund helps corporations and founders from India and Southeast Asia arrange a second headquarter in Abu Dhabi, and in some instances, the area acts as a base to launch operations in the Middle East and North Africa. The fund’s holding firm ADQ goals to spur technology-led entrepreneurship in the area.
PolicyBazaar had additionally executed one other spherical of secondary share sale of shares a number of months in the past when SoftBank Vision Fund, an present backer, purchased stakes from older buyers together with Tiger Global, Tiger Global Management, Ribbit Capital and Inventus Capital. At the time, PolicyBazaar was valued at $1.5 billion. The firm additionally counts China’s Tencent, InfoEdge, Chiratae Ventures, Inventus Capital, Premji Invest and Temasek as buyers.
The firm provides pure time period, investment-linked, well being and auto insurance coverage. It claims practically 10 lakh transactions a month, accounting for practically 25% of India’s life cowl, and over 7% of India’s retail medical insurance enterprise.
