2024/05/02 17:34 pm
The parent company of Policybazaar.com, PB Fintech, has received board approval to sell stakes in at least two of its subsidiaries and pick up a shareholding in a UAE-based insurance broker. The strategic stake acquisition will enable PB Fintech to expand its local offerings in the UAE.
The insurtech giant said that it has received a green light to divest a 29.3% stake (2.93 Lakh shares), in Visit Health Private Limited (VHPL) for INR 76 crore. It will, however, continue to retain an 8.2% stake, (1.22 Lakh shares) in VHPL.
The proposal to offload the company’s entire shareholding in another subsidiary, Visit Internet Services Private Limited (“VISPL”) for INR 2 Crore has also been approved.
In a BSE filing, the Gurugram-based startup also announced that the company's plan to acquire a 100% stake in the UAE-based Genesis Group has been greenlit. The group is currently owned by PB Fintech's CEO Yashish Dahiya via YD Holdings through insurtech’s full-owned subsidiary, Icall Support Services.
“… We hereby inform that the board of directors of PB Fintech Limited at its meeting… considered and approved… the acquisition of shares of Genesis Group Limited… at an aggregate consideration of AED 3,877,400. The enterprise value is AED 877,400 which is approximately INR 2 crore,” the company said.
The Genesis Group owns a 49% stake in Dubai-based insurance broker Genesis Insurance Brokers. The deal was pegged at INR 8.8 crore and is expected to be completed by the end of this month.
According to reports, the development comes at a time when PB Fintech has been on an expansion spree.
In March, it announced plans to incorporate a new wholly-owned subsidiary to enter the payment aggregation business. While, in February, Policybazaar Insurance Brokers also received an in-principle nod from IRDAI to upgrade its licence, setting the path for its foray into the reinsurance business.
Last month, ICICI Lombard, a private insurance major, announced a strategic partnership with PB Fintech. Under this collaboration, ICICI Lombard said it will offer its diverse range of insurance products on the Policybazaar platform.
Additionally, PB Fintech revealed the incorporation of a subsidiary unit named PB Pay Private Limited. PB Pay has been established to facilitate the business of payment aggregation, with an initial paid-up capital of INR 27 crore, PB Fintech said.
In March, PB Pay was incorporated by the promoters of PB Fintech. The subsidiary was conceptualised to operate as a payment aggregator, aiming to tap into emerging opportunities in the digital payment ecosystem.
PB Fintech turned profitable in Q3 FY24 with a PAT of INR 37.2 Crore while operating revenues jumped 43% YoY to INR 871 Crore during the quarter.
Article Sources – PB Fintech, CNBC TV18