The board of PB Fintech, popularly known as online insurance platform Policybazaar, has approved the foray into healthcare services by setting up of a wholly-owned subsidiary PB Healthcare, the company informed on December 3.
The new entity has sought approval to be named as 'PB Healthcare Private Limited' or 'PB Healthcare Services Private Limited', or any other name as may be approved by the Ministry of Corporate Affairs.
As part of the consideration, PB Fintech will subscribe to 50,000 shares at a face value of Rs 10 per share aggregating to Rs 5 lakh, and will retain 100% ownership of the proposed entity.
On the plans of healthcare foray, the management had recent said that it is confident that Policybazaar will benefit from such an initiative. "Policybazaar is not investing in this venture from a financial return perspective. Policybazaar, if it is investing, is investing from an enablement perspective. Because this venture benefits Policybazaar a lot, a huge amount and the industry a huge amount." the company had said during the recent earnings call.
PB Fintech said Policybazaar has become a very 'meaningful part' of the insurance industry, given its growth rate, and it wants to solve potential problems in the healthcare services side. "...for us it's very critical to look at the long term growth of the industry, and that is the reason we're getting into it. Because they're seeing that particular problem. We are seeing this as a potential problem for the industry growth, if not solved," the management added during the September earnings call.
The only reason for such as investment is to 'make Policybazaar grow faster, not to make a financial return', the company added.
PB Fintech had in recent said that the new healthcare company would look to generate its own resources for growth and may attract private equity investors or other financial institutions.
In September, the reports of Policybazaar's healthcare foray had caused some jitters among investors, which prompted the management to reassure. Yashish Dahiya, CEO and Chairman of PB Fintech had previously mentioned that the company was actively exploring opportunities in this space.
"Aligning the interests of insurers and hospitals could enhance the claims experience for customers and, in turn, boost insurance penetration," PB Fintech had said in September.
Alok Bansal, co-Founder and Executive Vice Chairman of PB Fintech had in the past cited the need for a healthcare venture for the middle class, stressing that it aligns with the Policy Bazaar's broader vision of financial inclusion.
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