SoftBank-backed fintech startup Policybazaar aims to go public in 2021 at a valuation of around $3.5 billion. The platform plans to secure around $250 million funding at its $2 billion-plus valuation before September 2021 IPO.
As reported by Bloomberg Quint (1), this will potentially make Policybazaar India’s first mega-startups to debut as its digital economy roars. Yashish Dahiya, the co-founder of Policybazaar, stated that the company is presently selecting two to three IPO lead underwriters from a list that includes multiple Wall Street banks.
He added that the IPO size would be around $500 million and that the company has a global interest and will raise in the coming weeks.
Policybazaar has some of the most prominent backers, including SoftBank Group Corp’s Vision Fund, Tiger Global Management, and Tencent Holdings Ltd.
Similar to fellow unicorns like Ola, Oyo, Flipkart, and Paytm, the online insurance platform rode an upsurge of internet and mobile use that pushed digital services across India, the world’s second-most populous nation.
Friendlier public listing rules abroad
Policybazaar recently received Rs 356.6 crores funding from its existing investor SoftBank which was allotted to SoftBank’s unit SVF Python II (Cayman) Limited as 7,144 preference shares at a nominal value of Rs 100 with a premium of Rs 49.9 lakh per share.
Dahiya, who is currently in London, said that Policybazaar intends to list in Mumbai but might consider dual listing if rules change. India currently prohibits public listings for sensitive sectors, including financial services, which is why many fintech startups have incorporated in countries with friendlier public listing rules like Singapore and the US.
Less than one-fourth of the 45 million Indian people who currently subscribe to individual health plans are adequately covered for chronic diseases like diabetes and high blood pressure, which is why they need a plan.