Gurugram-based online insurance policy aggregator PolicyBazaar has closed its latest round of funding of Rs 500 crores led by global asset management firm Wellington Management, private equity firm True North and IDG Ventures India.
The funding round also saw participation from existing investors, such as New York-based investment firm Tiger Global Management, PremjiInvest, the personal investment arm of Wipro Chairman Azim Premji, and Temasek, the government of Singapore-owned investment company, among others.
Earlier, it was reported that private equity firm True North (formerly India Value Fund) and venture capital firm IDG Ventures India have joined Rs 500-crore of investment bandwagon in the online financial company in September.
Policybazaar, an insurance comparison website run by EtechAces Marketing and Consulting Pvt. Ltd was founded in 2008 by IIT Delhi and IIM Ahmedabad alumnus Yashish Dahiya.
EtechAces which also owns and operates loans and credit cards marketplace PaisaBazaar has, till date, raised about Rs 1,000 crore including this round, largely from InfoEdge, Tiger Global Management, and Premji Invest.
“We are planning to invest in technology, customer service, and towards geographical expansion. The focus will continue to be on creating awareness about the importance of protection products, which we feel, will be the drivers of the insurance industry,” said PolicyBazaar CEO Dahiya, reports ET.
The company broke even in the financial year 2016-17 with a total revenue of Rs 220 crore, up from Rs 109 crore in 2015-16, and it is readying itself for an initial public offering (IPO) by the end of 2018.
Policybazaar competes with Sequoia Capital-backed Bank Bazaar (A&A Dukaan Financial Services Pvt. Ltd) and new entrants such as Coverfox.
The Indian government has approved the ordinance to increase Foreign Direct Investment (FDI) limit in insurance sector from 26 per cent to 49 per cent which would further help attract investments in the sector.