Policybazaar Eyes Myloancare Acquisition

Policybazaar Eyes Myloancare Acquisition

PB Fintech, which operates Policybazaar, has announced that the company’s board has cleared a proposal to procure up to 70.1 percent stake in Myloancare. The board also cleared a proposal to set up a new company to do the business of an account aggregator.

Delhi-based Myloancare is engaged in the business of sourcing and servicing of financial products, generating leads for banks and financial institutions, developing software and providing services in relation to data processing, financial data analysis, information systems and data communication systems.

PB Fintech would acquire about 24.9 percent stake in Myloancare after intimation to the RBI. Subsequently, the company will increase its stake to 70.1 percent. It said that it aims to complete the acquisition within six months for a cash consideration.

The account aggregator (AA) entity will undertake the activity of retrieving or collecting financial information pertaining to customers. This information will be provided in a usable manner to the customer or any other entity that the customer instructs. The RBI had created the AA framework to enable customers of a financial institution to obtain service from any other financial institution they choose by sharing their transaction history.

PB Fintech said that it aims to set up the new account aggregator (AA) NBFC as a wholly-owned subsidiary within nine months.

In a filing, the company says, “The AA has to be licenced by the RBI. The incorporation will leverage the facility without external dependency on another account aggregators for information gathering, cost saving / revenue housing and offer seamless solutions.”

Ncubate Capital Partners an arm of the Gurgram-based SAR Group had infused 6.5 crore in My Finance Care Advisors, which operates Myloancare.