India’s largest online insurance aggregator Policybazaar, which is backed by a host of marquee investors like Softbank, Temasek, Info Edge, Tiger Global and Premji Invest has filed papers with market regulator Sebi to raise Rs 6,017 crores via a mega IPO aiming at a valuation between $5.5 billion and $6 billion, multiple industry sources with knowledge of the matter told Moneycontrol.
On July 1, 2021, Moneycontrol had reported that Policybazaar was planning to file its DRHP ( draft red herring prospectus) with Sebi later in the month.
Exclusive: Policybazaar aims to file DRHP for IPO in July, eyes $4-5 billion valuation
Earlier on February 21st, 2021, Moneycontrol had reported that the firm had picked Kotak Mahindra Capital, Morgan Stanley, ICICI Securities and Citi as advisors for the listing.
“ The DRHP has been filed with the regulator. The fresh issue component is around Rs 3,700 crores which will be utilised for expansion plans and as growth capital. The balance is the OFS or offer for sale component,” one of the individuals above told Moneycontrol.
A second individual confirmed the same .
“ The OFS portion will mostly be led by Softbank,” shared a third individual adding that Jefferies, HDFC and IIFL Securities are also part of the syndicate of i-bankers working on the deal.
Shardul Amarchand Mangaldas is the company counsel, Cyril Amarchand Mangaldas is the counsel to the bankers while Latham and Watkins and Linklaters are acting as the international legal counsels, two other individuals told Moneycontrol.
All the five individuals above spoke to Moneycontrol on the condition of anonymity.
Moneycontrol could not elicit an immediate comment from Policybazaar, it’s investors and the i-banks and law firms for this story.
POLICYBAZAAR & ITS LONG LIST OF CRÈME DE LA CRÈME INVESTORS
Policybazaar is housed under Etech Aces Marketing & Consulting which also houses lending marketplace Paisabazaar. Other than heavyweights Softbank, Temasek, Info Edge, Premji Invest & Tiger Global, the firm’s long list of enviable investors also includes True North, Steadview Capital, Ribbit Capital, Inventus, Chiratae Ventures & Wellington Management.
It’s listing plans come on the back of a sharp spike in the demand for online health and life insurance products post the outbreak of Covid-19. It offers products in segments ranging from life insurance ( it claims to account for 25 per cent of India’s life cover), investment plans, health insurance, motor insurance, general insurance, travel insurance and others. According to its website, it hit 10 million unique customers in FY 19, sells 4 lakh insurance policies every month and has 40 plus insurers on its platform.
For FY20, Policybazaar recorded a loss of Rs 218 crore on a revenue of Rs 515 crore, compared to a loss of Rs 213 crore on a revenue of Rs 310 crore in FY19. Moneycontrol could not independently ascertain its latest financials. Earlier this year, the firm also got an insurance broking licence from the Insurance Regulatory and Development Authority of India.
Yashish Dahiya and Alok Bansal are the co-founders of Policybazaar which was set up in 2008. Dahiya, a graduate of IIT Delhi, and the group CEO hails from an army family while Bansal functions as the group CFO. Interestingly, Dahiya is amongst the country’s top-performing triathletes and has completed seven Ironmans (a popular endurance event). He has also represented India at the Masters swimming world championship in Kazan, Russia.
“What you sell here is a promise. You are paying for a promise. And the best-case scenario here, for both parties, is if you never use the product,” Dahiya said at an industry event recently.
“Currently about 6 crore families in India can afford private insurance of a meaningful kind. Only 15 percent of these families have insurance, and this 6 crore will become 15 crore in the next 10 years. That is inevitable. So the market is expanding and becoming much more meaningful now,” he added.
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