PolicyBazaar IPO

PolicyBazaar is a leading insurance aggregator that started in 2008. When it started its journey, the portal was one of a kind as it pioneered transparency and flexibility in selecting insurance policies. Presently, there are 35 insurance companies on the platform, offering a slew of policies.

PolicyBazaar IPO Objectives

- Meet general corporate expenses
- Invest in the overseas business present in the UAE

PolicyBazaar IPO - Details

PB Fintech, PolicyBazaar’s parent company, has passed a resolution in favour of an initial public offering, for which it will file papers by July’s end. Following their application, they will need approval from SEBI and IRDAI. Since the insurance sector is highly regulated, this approval will take some time.

Accordingly, the aggregator plans to release its IPO by the end of this year. Moreover, PB Fintech converted into a public limited company ahead of the PolicyBazaar IPO. Apart from these, for regular updates regarding the PolicyBazaar IPO, refer to the following section.

We will keep updating it as relevant information comes along.

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

₹ To be updated

Face Value

₹ To be updated

per equity share

Market Lot

₹ To be updated

Listing at NSE, BSE

PolicyBazaar IPO Important Dates

IPO Open Date Yet to be announced
IPO Close Date Yet to be announced
Basis Of Allotment Date Yet to be announced
Initiation Of Refunds Yet to be announced
Credit Of Shares To
Demat ACcount
Yet to be announced
IPO Listing Date Yet to be announced
UPI Mandate Expiry Date Yet to be announced

Why Should You Invest in PolicyBazaar IPO?

Here are some reasons why the PolicyBazaar IPO can be a lucrative investment decision for many –

1. PolicyBazaar has a wide customer base in India. According to company reports, they account for almost 25% of India’s term policy sales.
2. The company also receives more than 100 million viewers every year, and they sell about 4 lakh policies monthly through their platform.
3. The company has recently received its IRDAI licence, which will help it expand its scope of operations.
4. PolicyBazaar recently received a round of $75 million funding, which they plan to invest in their UAE operations.
5. The company’s UAE wing intends to nudge the sum assured figure via term insurance policies to $1 billion.

Financial highlights

Financial year ending Total revenue Total expenses Profit after tax
March 2019 Rs. 528.8 crores Rs. 863.6 crores Rs. 344.2 crores
March 2020 Rs. 854.7 crores Rs. 1149.6 crores Rs. 304 crores

How to apply for PolicyBazaar IPO?

You can apply for the PolicyBazaar IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel Broking account. Proceed to book PolicyBazaar IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel Broking, apply directly for PolicyBazaar IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel Broking to begin your investment journey.

PolicyBazaar IPO - Noteworthy Highlights

PolicyBazaar began its journey in 2008 as an insurance policy comparison website. However, it then shifted to selling insurance plans and is now India’s largest online insurance aggregator. Here are some notable highlights of PolicyBazaar :

1. Over the years, the company has amassed over $766 million in 13 rounds of funding. The recent one was worth $75 million from Falcon Edge Capital for its UAE wing.

2. PolicyBazaar offers insurance policies from a host of companies. Their portfolio of products includes life as well as general insurance policies. The recent IRDAI licence will further bolster their reputation as a leading insurance aggregator.

3. Currently, PolicyBazaar has about 10,000 employees.

4. Company reports show PolicyBazaar contributes nearly 25% of India’s total term insurance sales. In FY2020, they had total revenue of Rs. 528.8 crores

PolicyBazaar IPO - SWOT Analysis

strengths

Strengths

  • Market presence: PolicyBazaar is dealing in this online space for more than a decade now. Thus, they’re well poised to expand and further strengthen their operations. According to the platform, they receive more than 100 million visitors yearly and sell about 4 lakh insurance policies a month.
  • IRDAI licence: PolicyBazaar recently received its insurance broking licence from IRDAI. This licence will enable the company to venture into other business verticals like claim assistance, setting up Points of Presence networks, and various other offline services. It will also help PolicyBazaar to charge a fee for web aggregation and commission.
  • Multiple products: More than 35 insurance companies are enlisted on PolicyBazaar’s platform. Thus, one can choose from a wide range of products from multiple providers.
  • PStrong funding: Currently, PolicyBazaar operates on a fund base of $766.6 million. Also, recently the company has received funding worth $75 million from the US-based Falcon Edge Capital. This IPO will further catalyse its growth and help it expand into various verticals.
Weaknesses

Weaknesses

  • Losses in consecutive years: PolicyBazaar has clocked losses of Rs. 213 and Rs. 218 crores in FY19 and FY20, respectively.
  • High operating costs: This company spends about 40% of its revenue on advertising and 45% on providing various employee benefits. It leaves a significant dent in its finances and restricts its scope of profit utilisation.
  • Negative EBITDA margin: The EBITDA margin of PolicyBazaar was negative in FY2019 and FY2020, a worrying sign for any organisation.
Opportunities

Opportunities

  • Expanding UAE operations: PolicyBazaar has invested Rs. 36 crores approximately in its subsidiary in Dubai, PB Fintech FZ LLC. Currently, this venture has sold about $100 million worth of term insurance plans, and PolicyBazaar plans to up this tally to $1 billion.
  • Increased awareness: Due to Covid-19, insurance penetration in the market has rapidly gone up. Hence, this aggregator is well-positioned to benefit from this rising awareness concerning insurance policies.
  • Changing preferences: According to a PWC survey, nearly 50% of respondents rely on online aggregators to buy their policies. Therefore, PolicyBazaar is well poised to benefit from this.
Threats

Threats

  • Increasing competition: Over the years, various enterprises have mushroomed in the digital insurance segment, of which Bankbazaar, Acko, and Coverfox pose stiff competition to the company. Although PolicyBazaar holds the largest market share at present, the margins are thin.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Market presence: PolicyBazaar is dealing in this online space for more than a decade now. Thus, they’re well poised to expand and further strengthen their operations. According to the platform, they receive more than 100 million visitors yearly and sell about 4 lakh insurance policies a month.
  • IRDAI licence: PolicyBazaar recently received its insurance broking licence from IRDAI. This licence will enable the company to venture into other business verticals like claim assistance, setting up Points of Presence networks, and various other offline services. It will also help PolicyBazaar to charge a fee for web aggregation and commission.
  • Multiple products: More than 35 insurance companies are enlisted on PolicyBazaar’s platform. Thus, one can choose from a wide range of products from multiple providers.
  • Strong funding: Currently, PolicyBazaar operates on a fund base of $766.6 million. Also, recently the company has received funding worth $75 million from the US-based Falcon Edge Capital. This IPO will further catalyse its growth and help it expand into various verticals.

Weaknesses 

  • Losses in consecutive years: PolicyBazaar has clocked losses of Rs. 213 and Rs. 218 crores in FY19 and FY20, respectively.
  • High operating costs: This company spends about 40% of its revenue on advertising and 45% on providing various employee benefits. It leaves a significant dent in its finances and restricts its scope of profit utilisation.
  • Negative EBITDA margin: The EBITDA margin of PolicyBazaar was negative in FY2019 and FY2020, a worrying sign for any organisation.

Opportunities 

  • Expanding UAE operations: PolicyBazaar has invested Rs. 36 crores approximately in its subsidiary in Dubai, PB Fintech FZ LLC. Currently, this venture has sold about $100 million worth of term insurance plans, and PolicyBazaar plans to up this tally to $1 billion.
  • Increased awareness: Due to Covid-19, insurance penetration in the market has rapidly gone up. Hence, this aggregator is well-positioned to benefit from this rising awareness concerning insurance policies.
  • Changing preferences: According to a PWC survey, nearly 50% of respondents rely on online aggregators to buy their policies. Therefore, PolicyBazaar is well poised to benefit from this.

Threats 

  • Increasing competition: Over the years, various enterprises have mushroomed in the digital insurance segment, of which Bankbazaar, Acko, and Coverfox pose stiff competition to the company. Although PolicyBazaar holds the largest market share at present, the margins are thin.

PolicyBazaar: A competitive analysis

Presently, PolicyBazaar holds the largest share among its peers, amounting to 40%. BankBazaar is on its heels with a 30% share, Acko with a 20% share, and Coverfox with a 10% share. Even though, PolicyBazaar maintains a competitive edge presently, its competitors are aligning their business models to match the company’s level of transparency.

PolicyBazaar IPO FAQs

What is the PolicyBazaar IPO?

PolicyBazaar is planning to go public by this year’s end. The particulars of this IPO are yet to be announced, but its board of directors have given it a green signal after their recent Extraordinary General Meeting (EGM). After its listing, the company will come under the regulations of SEBI.

When will PolicyBazaar IPO open for subscription?

No relevant information is available yet.

What is the minimum lot size that retail investors can subscribe to?

The company has not disclosed any information regarding the subscription size. 

When is the PolicyBazaar IPO listing date?

There is no information on this yet.

How will I receive PolicyBazaar shares?

The PolicyBazaar shares would be credited to your DEMAT account post allotment.

Who are the merchant bankers for PolicyBazaar IPO?

Morgan Stanley, Kotak Mahindra Capital, Citi Bank, ICICI Securities are the merchant bankers for this PolicyBazaar IPO.

What is the minimum order quantity for PolicyBazaar IPO?

Information related to the minimum order quantity of PolicyBazaar IPO is not available yet.

Who is the registrar for PolicyBazaar IPO?

No information associated with the registrar of PolicyBazaar IPO has been disclosed yet.

Which categories of investors are allowed to participate in this IPO?

Retail individual, NIB, and QIB are the expected categories that can participate in this PolicyBazaar IPO. 

Who are some notable investors of PolicyBazaar?

Tiger Global, Info Edge, Ribbit Capital, Premji Invest, and True North are some of the notable investors of PolicyBazaar.

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