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SoftBank’s Vision Fund has reportedly bought an additional stake worth $130 million in the owner of Indian insurance marketplace, PolicyBazaar.<\/p>\n
Times of India reported the deal based on three sources who said the new investment would give SoftBank a more than 15% stake in the company.<\/p>\n
The parent company, called EtechAces Marketing and Consulting, is valued at around $1.5 billion.<\/p>\n
![](\"https:\/\/www.fintechfutures.com\/files\/2020\/07\/policybazaar.jpg\")
<\/p>\nThe firm has done well from the surge in interest for health and life insurance products<\/p>\n<\/div>\n
It also owns smaller Indian firms Paisabazaar, which offers lending and credit card solutions, and healthtech venture, DocPrime.<\/p>\n
$130m investment<\/p>\n
SoftBank’s further cash injection into PolicyBazaar’s owner is a mix of an earlier agreed capital infusion worth $50 million, and an acquisition of shares worth $80 million.<\/p>\n
Once source tells Times of India that existing investors such as Ribbit Capitak, Invesntus Capital India, and Tiger Global Management, had bought the shares.<\/p>\n
“SoftBank has bought the secondary shares at a premium to the valuation at which they did the primary at $1 billion in 2018,” the source says.<\/p>\n
SoftBank led PolicyBazaar’s $200 million Series F in 2018, which also saw participations from existing investor InfoEdge.<\/p>\n
Total investment in the firm to date by SoftBank stands at around $200 million, according to Times of India sources.<\/p>\n
SoftBank’s Vision Fund CEO Rajeev Misra tells Times of India in April that he sees consolidation in the Indian internet space as highly likely.<\/p>\n
In February, India made a change to its foreign direct investment (FDI) policy. It means FDI in companies like PolicyBazaar is no longer be capped at 49%, so start-ups and high-growth technology companies no longer have to rely on domestic investors.<\/p>\n
PolicyBazaar and Paisabazaar<\/p>\n
PolicyBazaar has been doing well during the coronavirus crisis, according to Times of India sources.<\/p>\n
Founded in 2008, the online platform gives users access to life and general insurance. It also features products from major Indian insurance companies, acting a lot like a marketplace.<\/p>\n
But sister company Paisabazaar, which launched in February 2014, has struggled during coronavirus. The firm had to lay off around half of its workforce – 1,500 employees — last month.<\/p>\n
“PolicyBazaar will make up more than the business downside at Paisabazaar, which is a temporary blip, and economy cannot run without loans,” the source says.<\/p>\n
The firm has done well from the surge in interest for health and life insurance products.<\/p>\n
SoftBank<\/p>\n
The Japanese conglomerate reported $17.7 billion in losses for the financial year 2020. Its first loss in 15 years, the bank made $19.6 billion in profit last year.<\/p>\n
It also reported an operating loss of $12.7 billion and net income loss of $894 million for the year.<\/p>\n
Lost investments to Uber and WeWork – which totalled to $9.8 billion – are largely to blame for the historic loss.<\/p>\n
The rest of the Vision Fund portfolio contributed $7.5 billion to overall losses. The conglomerate had reported a profit of $19.6 Bn last year.<\/p>\n
To date, SoftBank has invested more than $10 billion in around 15 Indian start-ups. These include Delhivery, Ola, Paytm, and Housing.com.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
Tags:<\/b> Ruby Hinchliffe<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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SoftBank’s Vision Fund has reportedly bought an additional stake worth $130 million in the owner of Indian insurance marketplace, PolicyBazaar. Times of India reported the deal based on three sources who said the new investment would give SoftBank a more than 15% stake in the company. The parent company, called EtechAces Marketing and Consulting, is … Continue reading SoftBank splashes $130m in Indian insurtech PolicyBazaar<\/span><\/a> Continue Reading