PB Fintech to Invest INR 829 Crore in Healthcare Arm
PB Fintech, parent of PolicyBazaar, will infuse INR 696 crore into its healthcare entity, PB Healthcare Services, as part of its strategic foray into India's emerging healthcare industry. The investment, together with contributions from CEO Yashish Dahiya, Executive Vice Chairman Alok Bansal, managerial key personnel, and outside investors, will take PB Fintech's holding to as much as 33.63% on a fully diluted basis. The final shareholding will be subject to the actual amounts of investment, as per a regulatory filing.
The money, to be infused in the form of equity shares and compulsory convertible preference shares (CCPS) in the financial year 2025-26, is pending shareholder approval through postal ballot. PB Fintech board approved the proposal in a meeting on Tuesday.
PB Healthcare Services, founded in January 2025, has an immediate objective to develop 1,000-bed-capacity hospitals within one year's time, starting at the National Capital Region (NCR) followed by the extension of this strategy to other major cities. Investment would fund the operating expense, office establishment, branding exercise, and growth-based strategies.
Yashish Dahiya described the long-term vision of the company, with a focus on moving away from the industry's revenue-per-bed model to one based on customer lifetime value. "We think the future model of healthcare will be centered around the lifetime value of the customer, and that begins with the insurance premium they pay," Dahiya said on PB Fintech's Q1 earnings call.
The proposed model involves partnering with hospitals and insurers to create standardised operating procedures, aiming to reduce claims discrepancies and streamline the insurance process. Dahiya added, "If this outsourced facility succeeds, PolicyBazaar stands to gain from a more efficient insurance process, potentially accelerating industry growth by 5% annually".
PB Fintech's move indicates its intent to expand beyond insurance and financial services, making it a significant player in India's emerging healthcare landscape.
