Policybazaar plans to raise ₹ 1,100 crore as buffer capital
PolicyBazaar, an Indian insurance aggregator and a global financial technology company plans to raise $ 150 million or Rs 1,100 crore in the third quarter of the current financial year.
This fundraising will be used as a buffer capital. Yashish Dahiya, the group’s CEO and co-founder said the company did not need capital for business expansion, but could raise funds as a buffer for unforeseen events.
“We can raise some capital as a buffer. In the future you will never know what will happen. COVID happened this year. If something else happens in the future.
We can raise about 150 million USD, but that is more for safety than for any scheme. It can happen in Q3, ” Yashish Dahiya said.
In addition, the company expects profitability to return this financial year due to increased demand for insurance products amid the epidemic.
Yashish Dahiya said that the growth of the previous year is between 70-100 percent depending on the insurance product.
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“This year we should be profitable. We were profitable in FY18, while in FY19 and FY20 we were not profitable enough. So it will help us to be profitable from this year,” he said.
Yashish Dahiya further said that the company will strengthen its operations, invest in customer service and work towards capital efficiency as it accelerates profitability this financial year.
He said that despite booking losses, the company’s revenue grew threefold, while at the end of FY15 both its market share and valuations doubled.
Yashish Dahiya said that during 2020-21, the company should get a revenue of Rs 1,100 crore and a marginal profit.
On the insurance premium side, he said that the current financial year would close with Rs 6,000 crore, while in FY 2015, it would be Rs 4,000 crore.
As far as other business money market is concerned, he said that there is some tension as the demand for loans has come down significantly due to the COVID-19 crisis.
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Amidst the coronovirus epidemic, increasing demand for life insurance and non-life insurance products is expected to return to policy gains in this market.