MUMBAI: Online insurance aggregator PolicyBazaar has raised more than $200 million in a new investment round led by SoftBank Vision Fund (SVF), as reported by TOI in its May 1 edition. The funding round values PolicyBazaar at $1 billion after the investment, making it a unicorn.
Just last week, food delivery app Swiggy entered the unicorn club, which comprises privately held tech companies valued at a billion dollars or more. People close to the development said PolicyBazaar has picked up around $200 in primary capital, which will come into the company, along with a $30-million secondary transaction that took place between existing investors.
The $100-billion SVF has bought only primary shares in EtechAces Marketing and Consulting, which runs PolicyBazaar and PaisaBazaar. SVF will own a 15% stake in PolicyBazaar’s parent.
The online insurer has doubled its valuation since it closed its previous fund-raise last year. As reported earlier, Info-Edge, which runs portals like Naukri.com, has participated significantly in the latest round, having pumped in $45 million, according to stock market filings. For SVF, this is will be its fourth investment from the largest tech-focused fund. Its earlier bets include OYO, Flipkart, Paytm.
EtechAces co-founder & group CEO Yashish Dahiya said the company would gain from SoftBank’s global footprint and experience. The company’s other investors like private equity fund True North also participated in the funding round. Tiger Global, Temasek, Wellington Management, one of the world’s largest asset management companies, PremjiInvest, are among its group of investors.
TOI had reported in December that PolicyBazaar’s parent held talks with investment banks as it explored an IPO valuing it at $1.5 billion. However, those plans have been put on hold for the next 18 months, sources said. Munish Varma, partner at SoftBank Investment, said, “PolicyBazaar, supported by SoftBank’s capital and ecosystem, is uniquely positioned to increase the adoption of insurance.”
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