PB Fintech to infuse Rs 350 crore into Policy Bazaar

PB Fintech will be infusing the overall funds in one or more tranches during the financial year 2023- 24 and 2024-25

Policy Bazaar, a wholly-owned subsidiary of PB Fintech Ltd, is set to receive an investment worth Rs 350 crore from the company. Policy Bazaar insurance brokers will sell around 58 lakh shares to the company against the investment.

PB Fintech will be infusing the overall funds in one or more tranches during the financial year 2023- 24 and 2024-25, the company said in an exchange filing.

The filing read: “The company has invested Rs 349,99,99,904 against which 58,04,311 equity shares of Rs 10 each at a premium of Rs 593 per share of Policy Bazaar have been allotted.”

The investment is expected to bolster the financial standing of the subsidiary. “The present investment allows the company to strengthen the financial health of its wholly-owned subsidiary to meet its general operating expenses and enhance brand awareness, office presence and strategic initiatives,” PB Fintech informed the bourses.

The parent company of Policy Bazaar reported a consolidated net loss of Rs 21 crore for the quarter ended September. The net loss was 89 percent lower than Rs 187 crore reported in the year-ago quarter. However, on a sequential basis, the company's net loss widened by 75 percent from Rs 12 crore in the June quarter.

The loss narrowed on a year-on-year basis on a jump in its operating revenue as the startup reported healthy growth in contribution margins and renewal rate in the reporting quarter.

The consolidated revenue saw a rise of 42 percent year-on-year to 812 crore. The core online revenue came in at Rs 597 crore, higher by 46 percent YoY.