PB Fintech plans fundraise to fuel global expansion
PB Fintech will raise the capital through a QIP and will use the funds to pursue inorganic growth opportunities in India and international markets, although it has not identified any specific targets.
PB Fintech Ltd, the parent company of Policybazaar, on Monday said it will hold a board meeting on February 5 to approve a fundraise aimed at financing global expansion through acquisitions and partnerships.
PB Fintech will raise the capital through a Qualified Institutions Placement (QIP) and will use the funds to pursue inorganic growth opportunities in India and international markets, although it has not identified any specific targets.
The move comes as the company's UAE operations demonstrated strong momentum. The Policybazaar.ae business posted 62% annual premium growth in the December quarter and has remained profitable for four consecutive quarters.
According to CEO Yashish Dahiya, PB Fintech commands over 93% market share in India's online insurance distribution and plans to replicate this tech-driven model overseas. The UAE business focuses on health and life insurance products, with cross-border offerings for expatriates and Indian consumers.
The fintech major plans to leverage significant cost synergies and integration opportunities from any international acquisitions. Dahiya emphasised that India has substantial advantages in "technology, finance, processes, and product thinking," particularly in areas like health insurance where Policybazaar has deep expertise.
The strategy involves using India's skilled workforce and technological capabilities to transform acquired businesses and make them more competitive in their local markets, while also learning from what those entities bring to the table.
PB Fintech is taking a careful approach to international expansion, with CEO Dahiya adding that the company is targeting large markets with stable businesses, where it can add value without significant risk.
The company prefers markets it knows well—Dahiya mentioned the UK as an example of a familiar market, while noting that entering Indonesia would be more difficult due to lack of local knowledge.
On the domestic front, PB Fintech continues expanding its hybrid distribution model. It now has a physical presence in nearly 300 cities for health insurance, where representatives meet customers in their homes.
For life insurance savings products, the company has launched a new model in mid-sized cities over the past few quarters, establishing smaller offices where advisors both take calls and meet customers in person.
Edited by Suman Singh