PB Fintech to Invest ₹696 Crore in Healthcare Arm

13 Mar 2025 , 12:16 PM

Policybazaar parent PB Fintech Ltd said it will invest significantly in its newly launched healthcare subsidiary. The board of PB Fintech approved an investment of up to ₹696 crore in PB Healthcare Services Pvt. Ltd., its sole subsidiary, on dilution through subscription or purchase of equity shares and compulsory convertible preference shares (CCPS) during FY 2025-26.

The investment, which is subject to the approval of shareholders through a postal ballot, will be completed during the financial year 2025-26, the company said in a regulatory filing. The investment will be conducted together with outside of investors, including:

Yashish Dahiya, Co-founder, Chairman & CEO of PB Fintech investing ₹87 crore for a 4.2% stake of PB Healthcare. Alok Bansal, Co-founder & Executive Vice Chairman of PB Fintech, who will invest ₹43.5 crore for a 2.1% stake. Sarbvir Singh (Joint Group CEO), Mandeep Mehta and Bhaskar Joshi, who will invest ₹2.25 crore for a 0.11% stake collectively.

After the investment, PB Fintech will hold 33.63% of PB Healthcare on a fully diluted basis. With a total investment in PB Healthcare of ₹828.75 crore, investors would hold an aggregate 40.04% of its equity, giving PB Healthcare a valuation of ₹2,100 crore. PB Healthcare, formed per 1 January 2025, will be in the healthcare and allied services industry. The investment will help solidify its structure, boost brand awareness, and further grow its business strategically.

Shivangi and SRM are associated parties, and the transaction will be executed at a fair value as evaluated by a Registered Valuer. PB Fintech believes that health insurance can be a significant long-term value driver as it is growing 4x faster than the industry average. By then, health insurance will account for more than 60% of the company in net present value (NPV) terms and a little over 30% of total premium kolled.