Indian online insurer PolicyBazaar files for IPO, seeks to raise over $800 million – TechCrunch

Indian on-line insurance coverage aggregator PolicyBazaar has filed for an preliminary public providing wherein it’s in search of to lift $809 million, changing into the fourth startup prior to now two months from the South Asian market to discover public markets.

In papers submitted to the market regulator in India, PolicyBazaar stated it’s seeking to increase $504 million by issuing new shares whereas the remainder will probably be pushed by sale of shares by current traders. Softbank plans to promote shares price over $250 million, whereas PolicyBazaar founders need to promote shares price $52.7 million, they stated within the papers.

The 12-year-old startup — backed by SoftBank, Falcon Edge Capital, Tiger World, and InfoEdge — stated it might contemplate elevating about $100 million in a pre-IPO spherical.

PolicyBazaar serves as an aggregator that permits customers to match and purchase insurance policies — throughout classes together with life, well being, journey, auto and property — from dozens of insurers on its web site with out having to undergo typical brokers. It operates in India in addition to the Center East.

PolicyBazaar web site

In India solely a fraction of the nation’s 1.three billion individuals at the moment have entry to insurance coverage and a few analysts say that digital corporations may show essential in bringing these companies to the lots. In accordance with score company ICRA, insurance coverage merchandise had reached lower than three% of the inhabitants as of 2017.

A mean Indian makes about $2,100 in a 12 months, in line with World Financial institution. ICRA estimated that of these Indians who had bought an insurance coverage product, they had been spending lower than $50 on it in 2017.

In a report early this 12 months, analysts at Bernstein estimated that PolicyBazaar instructions 90% of share within the on-line insurance coverage distribution market. The platform, which competes with Acko in addition to Amazon in India, additionally sells loans, bank cards and mutual funds. The startup says it sells over one million insurance policies a month.

“India has an under-penetrated insurance coverage market. Inside the under-penetrated panorama, digital distribution via web-aggregators like Policybazaar kinds <1% of the trade. This gives a big headroom for progress,” Bernstein analysts wrote to purchasers.

Zomato, which had a stellar public debut final month, in addition to fintech corporations Paytm and MobiKwik have filed for his or her preliminary public choices in latest weeks.