Online insurance and other financial product marketplaces, PolicyBazaar has filed for an IPO (Initial Public Offering) of Rs. 6,017 Crores ($809 million). The company has submitted its DRHP (Draft Red-Herring Prospectus) with markets regulator SEBI on Monday.
Founded in 2008, PolicyBazaar has become the fourth major Indian start-up after Zomato, MobiKwik, Paytm, which are either going public or filing for it.
As per the DRHP, the offer consists of a fresh share issue worth Rs. 3,750 crores and an offer for sale up to Rs. 2,267 crores by the existing promoters and shareholders.
The offer to sell comprises of Rs. 1875 Crores by SVF Python II (Cayman), Rs. 250 crores of worth by Yashish Dahiya, Rs. 95 crores by Alok Bansal, Rs. 27 crores by founder United Trust, Rs. 12 crores by Shikha Dahiya, and Rs. 7 crores by Rajendra Singh Kuhar.
Last fiscal, PolicyBazaar was India’s largest digital insurance marketplace with a 93% market share based on the number of policies sold. About 65% of all digital insurance sales in India by volume was transacted through PolicyBazaar.
The firm said it is in talks with its book running lead manager for raising around Rs. 750 crores by way of a private placement of equity shares ahead of the IPO.
Kotak Mahindra Capital, ICICI Securities, Citigroup Global Markets India, HDFC Bank Ltd, Morgan Stanley, Jefferies India, and IIFL Securities are the book running lead managers to the issue.
As per PB Fintech, the parent company of PolicyBazaar, net proceeds from the offering would be utilized for increasing the visibility of the brand, growth opportunities, acquisition, and expanding presence outside India.
The 13-year-old start-up could seek a valuation of $5-6 billion of the public offer. As per our sources, the company is aiming to launch the IPO by December.
PB Fintech (comprising PolicyBazaar and PaisaBazaar) recorded a consolidated loss of Rs 150.24 crore in FY21 against a loss of Rs 304 crore in FY20 and a loss of Rs 346.81 crore in FY19. In the same period, revenue from operations increased to Rs 886.66 crore, from Rs 771.29 crore and Rs 492.24 crore, respectively.