Policybazaar raises Rs500 cr from existing, new investors
Online financial services portal Policybazaar, run by Etechaces Marketing and Consulting Pvt. Ltd, has raised Rs500 crore, roughly $75 million, at a valuation of $500 million from new and existing investors, a top company official said.
At least three new investors, including True North and IDG Venture Partners have come on board, chief executive Yashish Dahiya said.
He declined to name the third large investor in the round citing a confidentiality agreement, but a person close to the development said it is Wellington Management Group, a Boston-based assets management firm. Follow-on investors Temasek, Tiger Global Management and Premji Invest, along with a few others, participated.
Mint reported in March that Policybazaar was in talks to raise a pre-ipo (initial public offering) round from new and existing investors. Till date the firm has raised over Rs410 crore, largely from Infoedge, Tiger Global and Premji Invest. “We have just closed a Rs500 crore round at a valuation of half a billion dollars,” Dahiya told Mint over the phone. “The primary reason for doing this was to invest heavily in customer service through technology, and also invest in the Paisa Bazaar business. We are also likely to enter mutual funds.”
Policybazaar launched Paisa Bazaar in 2014. The new entity houses its loans and credit cards business while Policybazaar is for comparison and re-sale of insurance policies.