[Funding alert] Policybazaar raises $150M from Tencent to start newer financial services verticals
PolicyBazaar has raised close to $150 million in funding from Chinese technology conglomerate Tencent Holdings Pvt. Ltd.
Sources aware of the deal confirmed the news to YourStory, saying that post the transaction, the financial services company is valued at a little more than $1.5 billion.
The startup will be using the investment to venture into newer segments in financial services. These will be a mix of B2B and B2C businesses.
"PolicyBazaar is looking to launch newer ventures in the coming months, which will cover a host of financial services and is aiming to look strongly at growth of these businesses and existing verticals. That's the reason for getting the investment in," told a source.
It started a new brand under its parent called Zphin two months back to provide technology solutions to financial service businesses.
On the other hand, Tiger Global, which was an early investor in PolicyBazaar has sold close to 10 percent of its stake (to Tencent), sources commented.
"Tiger Global didn't want to dissolve its entire stake in the company and still holds small percentage in PolicyBazaar," added a source.
In June 2018, Policybazaar raised a mega $238 million round led by SoftBank Vision Fund and existing investor Info Edge, which pushed the financial services major into the Indian unicorn club.
The funds were raised for its healthcare and telemedicine venture, Docprime, which was launched in August 2018. Then, one month later, it received an internal funding of $50 million from parent company, EtechAces Marketing and Consulting Private Limited.
In FY18, PolicyBazaar's parent reported a loss of Rs 59 crore, against a profit of Rs 7.31 crore in the previous fiscal. Earlier in July 2018, it also said that it looks to take its revenue to Rs 1,500 crore by FY19.
(Edited by Saheli Sen Gupta)