Policybazaar’s parent ETechAces Marketing and Consulting has raised $45 million for the online insurance platform through secondary share sale from private equity (PE) firm True North, some angel investors and a few individual investors, sources told The Economic Times.
The deal now values Policybazaar at around $2.4 billion, the sources added, as per the report.
Moneycontrol could not independently verify the report.
“The company is expecting a valuation of about $3.5 billion for its planned IPO,” another source told the paper.
The new investors in ETechAces include Bay Capital, Cyrus Poonawalla Group, IIFL Wealth and White Oak Global Advisors. ETechAces also operates Paisabazaar.
This is not the first such secondary transaction by the company – it raised $20 million from True North for a valuation of $2 billion in 2020, bringing onboard Alpha Wave Incubation (managed by ADQ and Falcon Edge) in a primary-secondary capital mix.
Before this, Inventus Capital, Ribbit Capital and Tiger Global bought stakes from older investors such as SoftBank Vision Fund. Other investors in the platform include Chiratae Ventures, Info Edge (India), PremjiInvest, Steadview Capital, Temasek Holdings and Wellington Management.
True North in October 2020 said it was partially exiting Policybazaar, but did not give details.
Moneycontrol had earlier reported that Policybazaar is likely to shortlist Kotak Mahindra Capital, Morgan Stanley, ICICI Securities and Citigroup Capital Markets as advisors for its mega IPO this calendar year.
Policybazaar, Bay Capital, Cyrus Poonawalla Group, True North and White Oak did not respond to queries, as per the report.