Online insurance aggregator PolicyBazaar has raised more than $200 million in a fresh equity round led by SoftBank Vision Fund, marking its valuation over 1 billion. With the latest funding coming in, the Gurgaon-based startup has joined the unicorn e-commerce startup club this month.
PolicyBazaar which was launched in 2008 by IIT Delhi and IIM Ahmedabad alumni Yashish Dahiya, Alok Bansal and Avaneesh Nirjar, has the backing of high-profile investors including InfoEdge (Naukri.com), Inventus Capital, Tiger Global Management, Steadview Capital, Premji Invest, Temasek, Ribbit Capital, besides investments from other PE funds and family offices. The current Series F round also saw participation from its existing investor InfoEdge which runs the job portal Naukri.com, the company said in a press statement.
On the investment, Munish Varma, Partner at SoftBank Investment Advisers, said, “We believe that the Indian insurance market continues to remain massively under-developed and PolicyBazaar, supported by SoftBank’s capital and ecosystem, is uniquely positioned to dramatically increase the adoption of insurance products in the country.”
The online platform which operates under eTechAces Marketing and Consulting Pvt Ltd helps consumers to compare and purchase life insurance and general insurance products. It gets nearly 10 million visitors and records sale of nearly 300,000 transactions a month. Whereas, the parent company also runs PaisaBazaar, another marketplace for loans and credit cards.
Yashish Dahiya, Co-Founder and Group CEO, EtechAces said, “SoftBank’s culture of backing disruptive businesses and industry leaders with long-term capital investment gels well with our own values and vision of creating a transparent and empowering financial products marketplace. We hope to gain a lot from their global footprint and experience.”
According to Boston Consulting Group’s estimations, digital influence on insurance purchases will grow to 50% for life insurance and 75% for general insurance by 2020. This translates to nearly Rs 1.2 lakh crore of new insurance premium being digitally influenced by that time. PolicyBazaar believes this will enable it to grow at a CAGR of 80% over the next three years, achieving 10 million transacting customers by 2020.