Things to Know About PolicyBazaar IPO

PB Fintech Limited, the company that launched PolicyBazaar in 2008, has announced an IPO. The IPO opens on November 01, 2021, and closes on November 03, 2021. PolicyBazaar is one of India’s leading online platforms for consumers and insurance partners to buy and sell insurance products. You can visit the PolicyBazaar IPO page on Groww for details like the price band, lot size, etc., and apply for PolicyBazaar IPO.

Things to know before investing in PolicyBazaar IPO

Here are some important facts about PB Fintech that you should know before you decide to apply for PolicyBazaar IPO:

Path to IPO

• 2008 – PB Fintech Limited was incorporated
• 2008 – PolicyBazaar was launched to offer more information, choice, and transparency in insurance policies to customers.
• 2008 – Received an investment of USD4 million from Info Edge
• 2010 – Commenced health insurance-related activities
• 2012 – Registration of one of the subsidiaries of the company as an insurance web aggregator with the IRDAI
• 2015 – Registration of PaisaBazaar as an investment advisor with the SEBI
• 2018 – Received Series F investment and reached the USD1 billion valuation mark
• 2018 – Commenced operations in the United Arab Emirates
• 2021 – Registration of PolicyBazaar as an insurance broker with IRDAI

Owners of PolicyBazaar

PolicyBazaar is owned by PB Fintech Limited – a professionally managed company with no identifiable promoters. The founders of the company are Yash Dahiya and Alok Bansal. The shareholding pattern of PB Fintech Limited is as follows:

Make sure that you also go through the products and services offerings as an important aspect of the things to know before investing in PolicyBazaar IPO. The IPO opens on November 01, 2021.

Business Verticals

PB Infotech offers a range of products and services through PolicyBazaar and PaisaBazaar under the following categories:

• PolicyBazaar
  1. Risk Protection Products – including health and term insurance
  2. Compliance-led Products – including motor and travel insurance
  3. Savings & Investment Products – including traditional insurance plans and ULIPs
  4. B2B Offerings – including corporate insurance

• PaisaBazaar
  1. Unsecured Loans – to both salaried and self-employed consumers
  2. Credit Cards
  3. Secured Loans
  4. Credit Score Access

Here is the revenue generated by PB Fintech Limited over the last three years:

In FY-2021, PolicyBazaar contributed 68.5% of the revenues while PaisaBazaar brought in 31.5%. Remember, the IPO opens on November 01, 2021. 

Details of the business verticals

Among the things to know before investing in PolicyBazaar IPO, gaining a detailed understanding of the products and services offered is important. Here is a quick look at the products and services offered by PB Fintech Limited under various business verticals:

PolicyBazaar

• Risk Protection Products – PolicyBazaar offers the following risk protection products to consumers:
  • Health Insurance – It offers a wide range of health insurance products catering to various segments like healthy individuals, senior citizens, and people with pre-existing diseases. The offerings also include specific disease or organ-related insurance products.
  • Term Insurance – PolicyBazaar offers a wide range of term insurance policies. It works closely with its Insurer Partners to utilize the captured information to design pre-approved products.
• Compliance-led Products – These products are usually purchased by consumers to comply with certain legal and regulatory requirements:
  • Motor Insurance – This is the highest-selling policy on PolicyBazaar. The platform offers insurance for four-wheelers, two-wheelers, and commercial vehicles, covering own damage and third-party liability from over 22 Insurer Partners.
  • Travel Insurance – The platform offers different types of travel insurance plans to cater to different segments like students, family travelers, senior citizens, frequent flyers, etc.
• Savings & Investment Products – PolicyBazaar offers traditional insurance plans and Unit-Linked Insurance Plans (ULIPs) to help generate wealth for their financial goals.
• B2B Offerings – The platform offers corporate insurance including employee benefit policies to large corporates and SMEs.

PaisaBazaar

Through its PaisaBazaar platform, PB Fintech offers a range of products and services as described below:

• Unsecured Loans – PaisaBazaar offers unsecured loans to salaried and self-employed professionals. It uses a proprietary tool to match lending policies with consumer data.
• Credit Cards – The platform has partnered with numerous credit card issuers to offer a wide range of credit cards to consumers. It has also partnered with a bank to offer a credit card with a fixed deposit as collateral to help consumers with low credit scores get a credit card.
• Secured Loans – Through its Lending Partners, PaisaBazaar offers secured loans like home loans and gold loans to consumers.
• Credit Score Access – The platform allows consumers to access their credit scores for free. It also offers reports in multiple languages to improve financial literacy.

Peer Comparison

According to the Red Herring Prospectus, there are no listed companies in India that engage in a business similar to that of PolicyBazaar. Accordingly, it is not possible to provide an industry comparison in relation to it. Hence, make sure that you make a list of the things to know before investing in PolicyBazaar IPO carefully.

Objectives of the IPO

The company plans to utilize the net proceeds from the IPO towards funding the following objects:

• Enhancing the visibility and awareness of its brands, including but not limited to ‘Policybazaar’ and ‘Paisabazaar’;
• New opportunities to expand its consumer base including its offline presence;
• Strategic investments and acquisitions;
• Expanding its presence outside India; and
• General corporate purposes.

How to apply for PolicyBazaar IPO

You need a demat account and bank account to apply for an IPO. If you eventually want to sell the shares in the secondary market, then you would need a trading account too. You can apply for PolicyBazaar IPO by using one of these two methods of payment:

1. ASBA – available via the net banking interface of your bank account. Almost all banks offer this facility.

2. UPI – available with brokers who do not offer banking services.

How to apply for PolicyBazaar IPO on Groww

To invest in the PolicyBazaar IPO on Groww, follow these steps:

• Log in to your Groww account and select PolicyBazaar IPO
• Go through the details of the IPO like the price band, lot size,  etc. under the IPO banner
• Place your bids
• Approve the payment request on the UPI app
• Done