PolicyBazaar parent to back healthcare push with Rs 696 Cr investment
Following the investment, PB Fintech will hold up to 33.63% of PB Healthcare’s equity on a fully diluted basis, alongside investments from CEO Yashish Dahiya, Executive Vice Chairman Alok Bansal and others.
PB Fintech, the parent of PolicyBazaar, is set to invest Rs 696 crore in its healthcare arm, PB Healthcare Services, as it ramps up expansion in India’s booming healthcare market.
Following the investment, PB Fintech will hold up to 33.63% of PB Healthcare’s equity on a fully diluted basis, alongside investments from CEO Yashish Dahiya, Executive Vice Chairman Alok Bansal, three key managerial personnel, and external investors. The final shareholding may vary depending on the actual amounts invested.
The investment, which will be made in equity shares and compulsory convertible preference shares (CCPS) during the financial year 2025-26, is subject to shareholder approval via postal ballot. PB Fintech’s board approved the move in a meeting held on Tuesday, according to a regulatory filing.
PB Healthcare Services, incorporated in January 2025, aims to establish hospitals with a capacity of 1,000 beds within the first year. Initially, these hospitals will be set up in the National Capital Region (NCR) before expanding to other cities.
The capital infusion will be used to cover general operating expenses, brand awareness initiatives, office expansion, and other strategic goals, the company said in the filing.
According to Dahiya, the company is building its strategy around the fundamental belief that the future of healthcare lies in prioritising the lifetime value of the customer rather than the current revenue-per-bed model prevalent in the industry. "We believe the healthcare model of the future will focus on the lifetime value of the customer, which starts with the insurance premium they pay," he said in PB Fintech's Q1 earnings call.
The proposed model involves partnerships with hospitals and insurance companies to establish standardised operating procedures, reducing claims discrepancies. Dahiya further explained, “If this outsourced facility succeeds, Policybazaar stands to gain from a more efficient insurance process, leading to a projected 5% acceleration in industry growth annually."
PB Fintech has been diversifying beyond its core insurance and financial services marketplace, aiming to tap into the rising demand for digital health solutions in India.
Edited by Affirunisa Kankudti