MUMBAI: PB Fintech, the parent entity of SoftBank-backed online insurance aggregator Policybazaar has approved a resolution to raise up to Rs 6,500 crore, or $870 million, via an initial public offering (IPO), making it the fifth Indian startup this year to initiate proceedings to hit the public markets.
The Policybazaar IPO is expected to be a mix of a fresh issue of shares and an offer for sale (OFS), wherein existing investors can sell their stakes directly through exchanges, according to the regulatory filings.
According to sources, the company is likely to file a Draft Red Herring Prospectus (DRHP) with markets regulator Securities and Exchange Board of India (Sebi) soon as it eyes going public by December this year.
The online insurance aggregator — like Paytm and Zomato — is also expected to raise a pre-IPO round, which could include a secondary transaction for existing investors to dilute their stakes.
The Gurugram-based firm’s board approved the initial share sale at an extraordinary general meeting that was held on July 5, the regulatory filings showed. The startup has also passed a special resolution to rename as PB Fintech Ltd., converting from private limited to public entity.
A Policybazaar spokesperson didn’t immediately respond to ET’s queries. News website Entrackr was first to report the Policybazaar IPO resolution.
Policybazaar recorded a loss of Rs 218 crore in FY20 against Rs 213 crore in the previous fiscal. The financial results for FY21 are not out yet. The firm recently acquired an insurance broking licence from The Insurance Regulatory and Development Authority of India (IRDAI), which is an upgrade from its status as a web aggregator.
The new licence will allow Policybazaar to set up its physical network while also expanding product and service offerings significantly, which include claims assistance and point-of-sale network.
Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar founded Policybazaar in June 2008. The company’s list of investors includes Japan’s SoftBank Vision Fund, private equity firm True North, Premji Invest, Tiger Global and Temasek, among others.
