PolicyBazaar IPO next? PB Fintech planning Rs 6,500 cr fundraise at $5 Bn valuation

PB Fintech, the parent of SoftBank-backed PolicyBazaar, is planning to raise up to Rs. 6,500 crore ($870 million) through an initial public offering (IPO). This will make PolicyBazaar the fifth Indian startup to initiate such plans this year. The online insurance company is believed to be seeking a valuation of as much as $5 billion, up from $2.4 billion at the previous funding round. The PolicyBazaar IPO is expected to be a mix of new shares and an offer for sale via which existing shareholders can exit. This is similar to Paytm’s proposed public offer set for later this year.

PolicyBazaar IPO likely to launch in December

According to reports, PB Fintech may file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a December listing. The parent company has passed a special resolution to rename itself PB Fintech Ltd. as part of converting into a public entity from a private one. In a separate filing, the company has modified its Articles of Association (AOA) to resolve its public listing in conformity with the Companies Act.

PolicyBazaar to join Zomato in going public 

Earlier this month, Zomato raised Rs. 9,375 crore via an IPO. Meanwhile, Paytm has filed a DRHP for an IPO to raise Rs 16,600 crore in November. Mobikwik is another tech company that has filed for an IPO later this year as they are looking to raise Rs. 1,900 crore.

PolicyBazaar is one of India's largest insurance marketplaces

PolicyBazaar is one of India's largest insurance marketplaces. Its group subsidiaries include paisabazaar.com, a B2B venture and ZPhin.com. The company also offers lending and insurance services in the United Arab Emirates (UAE). In its last funding round, PolicyBazaar raised $75 million at a valuation of $2.4 billion. The firm is likely to deploy the additional capital to expand its services in the UAE and West Asia. Meanwhile, amidst last year's China-India border tension, PolicyBazaar CEO Yashish Dahiya had offered to buy back the 10% stake held by China's Tencent in its holding company at the time. As for the OFS or the pre-IPO placement, PolicyBaazar is yet to disclose the specifics.