Gurgaon-based eTechAces Marketing and Consulting, the owner of the online policy aggregator PolicyBazaar, has raised $75 million funding from Wellington Management, private equity firm True Northland, IDG Ventures India, and its existing investors, reports The Economic Times.
The company will use the funding for geographical expansion, building technology for its products, and introduces specialised products.
“The funding only opens up avenues for us to further innovate, look at geographical expansion and rally strongly behind creating mass awareness for consumer-centric protection products – term (pure life insurance), health and disease-specific products,” said Yashish Dahiya- Co-Founder and CEO, Policybazaar, in a statement. He also added the the company will continue to invest behind technological solutions to enhance consumers experience.
According to ET’s report, PolicyBazaar is looking at expansion into international markets, starting with the Middle East this year.
In March, the company spoke about plans for its public listing, according to several media reports. But it is yet unclear if the plans are still firm, or the fresh funding is part of its pre-IPO round.
In an ET interview, Yashish Dahiya, CEO & Co-Founder, PolicyBazaar.com told that the company had broken even in the financial year 2016-17, with a total revenue of Rs 220 crore, up from Rs 109 crore in 2015-16, and said that PolicyBazaar is expected to be profitable in FY2018. PolicyBazaar provides users with a comparison of various insurance plans including life insurance, motor insurance, investment plans, travel insurance, health insurance and home insurance. The platform claims to clock 45 million visitors every year and nearly 100,000 transactions a month.
Founded in 2008, InfoEdge-backed Policybazaar has raised funds in five rounds from investors such as Inventus Capital, Tiger Global Management, Steadview Capital, Premji Invest, Temasek and Ribbit Capital, according to CrunchBase data.
In April 2015, PolicyBazaar raised $40 million in a Series D round of funding from PremjiInvest and other investors including Tiger Global and Ribbit Capital, Steadview Capital, and ABG Capital. Followed by which, Info Edge, which was the first company to invest in online insurance aggregator PolicyBazaar, informed the BSE that its stake in PolicyBazaar’s parent company eTechAces Marketing and Consulting Pvt. Ltd currently stands at 18%, which was reduced from 23% earlier.
PolicyBazaar competes with likes of EasyPolicy, Bankbazaar, also Acko-first insurance company with an online-only policy. Last month, Narayan Murthy’s Catamaran Ventures-backed digital insurance company Acko General Insurance received the final license from Insurance Regulatory and Development Authority of India (IRDA). Acko received the final license on September 18, and is looking to commence operations in December 2017. Also, payment company ItzCash recently marked its entry into the insurance business with a tie-up with HDFC ERGO to offer general insurance to customers.
Note: The story has been updated as we received a statement from the company.