eTech Aces yesterday announced that they've raised 49 percent stake from Info Edge India (Naukri), for Rs. 20 crores. Yashish Dahiya, CEO of eTech Aces (PolicyBazaar) has been in the online insurance business before - he was the CEO of First Europa, a Global Online Insurance Broker with operations in 9 countries, prior to which, he was the MD of ebookers Plc. MediaNama spoke to Dahiya about eTech Aces' fund raising and growth plans: Why did PolicyBazaar raise money from a strategic investor, instead of a financial investment from VCs? Wouldn't it have been better to take financial investment now, and then a strategic investment at higher valuations? For a few reasons - over time we will be applying for our own insurance brokerage license. There are restrictions on foreign investment there - that was one reason for going for a domestic company. Number two - I've been a manager all my life. I think an investor has a very different view to things, than an executing entrepreneur. When we started looking for an investor, within a week we had narrowed down on Naukri. They have a lot of experience, and we've already gained from the discussions with them. But you've sold them a very high stake - wouldn't selling 49 percent hinder further fund-raising? Does Info Edge have an option to acquire 100 percent? I envisage taking this company public over the next 5 years, and I don't think we'll need more funding than the amount we've raised already.…
