Policybazaar Ipo – Should I Invest In Policybazaar’s Ipo? Keep These 5 Things In Mind First – After Paytm and Mobikwik, another fintech company Policybazaar is about to bring its IPO. The company has submitted the necessary documents to Sebi to bring the IPO. If you are planning to invest in the company’s IPO, then keep these 5 things in mind.
Policybazaar Ipo – Should I Invest In Policybazaar’s Ipo? Keep These 5 Things In Mind First
According to the documents submitted with Sebi, the IPO of Policybazaar will be around Rs 6,000 crore. In this, the existing shareholders of the company will keep their shares for Offer for Sale, while new shares are also to be issued.
Policybazaar is owned by foreign companies. At the same time, the control of the company is also in the hands of foreign companies. Yashish Dahiya, the founder of Policybazaar, holds only 4.27% stake in the company.
Makesense Technologies (Info Edge) holds 14.56% stake in Policybazaar, while it includes Softbank, Temasek, Tiger Global, True North, Steadview Capital. Other companies like Rabbit Capital have investments. Yashish Dahiya’s stake is much less than the promoter’s stake as per Sebi’s rules, so when the company is listed, he will not be its promoter.
Policybazaar has long been a loss-making fintech. Its condition is also similar to Paytm and Mobikwik. The market is yet to see the profit based on the model of these fintech startup companies. Although these companies have a store of data. According to Policybazaar’s annual report for 2019-20, he spent an average of Rs 3.33 on marketing for every rupee earned, which is a major reason for his loss.
Last month, the regulator of the insurance sector recognized Policybazaar as the ‘Direct Insurance Broker’ of the life insurance and general insurance sector. This has upgraded the status of the company and is no longer just an insurance aggregator.
The share of 4 major partners in Policybazaar’s revenue is more than 32%. At the same time, big insurance companies are increasing their own digital presence. Many companies have digitized the entire process from selling their policies to claim settlement, it has to be seen how it will affect the future of Policybazaar.
Policybazaar plans to open 200 retail outlets by the end of 2023-24. These outlets will act as a customer experience sector, where they will be able to get information about insurance of many different companies at one place. In a way, it can be seen as an insurance super market.
Policybazaar plans to try its India business model in Gulf countries as well. For its expansion abroad, the company has made a separate provision of Rs 375 crore in the IPO.