Capital Group boosts stake in PB Fintech; 360 One PE exits with 2.4X gains: Report
Capital Group, a US investment management firm, has increased its stake in PB Fintech by 6.24%, investing approximately Rs 2,270 crore.
US-based investment management company Capital Group has reportedly acquired an additional 6.24% stake in PB Fintech, the holding company of Policybazaar and Paisabazaar, for around Rs 2,270 crore.
The New World Fund Inc, which initially held a 1.67% stake in PB Fintech, has increased its ownership by 4.22% (equivalent to 1,90,13,242 shares) for approximately Rs 1,872.16 crore, as per a report by Moneycontrol.
This acquisition has elevated New World Fund Inc’s stake to 5.89% from the previous 1.67%.
Additionally, the Small Cap World Fund Inc, a venture capital firm under Capital Group, acquired 91,22,194 shares, accounting for almost 2.02% stake for Rs 898.23 crore.
Separately, another financial services company, 360 One Asset Private Equity, formerly IIFL Wealth exited its investment in PB Fintech (Policybazaar), realising 2.4X gains on invested capital.
Initially investing Rs 191 crore across various funds, 360 One PE ultimately received Rs 451 crore from its investment as part of its tech strategy.
Last month, Singapore's Temasek Holdings sold its entire 5.42% stake in PB Fintech. Temasek's unit, Claymore Investments (Mauritius) Pte Ltd, offloaded 2.44 crore shares for Rs 2,425 crore in two tranches on February 1.
Despite this exit, the overall share of Foreign Institutional Investors (FII) in PB Fintech increased to 48.97% from 46.01% in the previous quarter, the report by Moneycontrol said.
Days before Temasek sold holdings, PB fintech reported its first-ever quarterly after-tax profit of Rs 37 crore in the third quarter of the financial year 2024, from a Rs 87 crore loss in the corresponding period last year.
Its operating revenue rose 42.6% to Rs 870 crore between October and December 2023, up from Rs 610 crore in Q3 FY23, while expenses rose 20% to Rs 925 crore in the quarter.
Founded in 2008 by Yashish Dahiya and Alok Bansal, PB Fintech operates an online platform for insurance and lending products in India and internationally. It provides access to insurance, lending products, and support services through its online financial services platform.
(The copy was updated to remove an attribution.)
Edited by Affirunisa Kankudti