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Policy Bazaar IPO Review


PB Fintech is coming up with an initial public offer to raise Rs 6,017.5 crore, the issue comprises fresh issue of Rs 3,750 crore and an offer for sale of Rs 2,267.5 crore by its existing shareholders; face value of each share is fixed at Rs 2. Policy bazaar’s share is listing at BSE, NSE.

About Company

Policy bazaar is country’s largest online platform for insurance and lending products, data, and innovation. Policy bazaar provides convenient access to insurance, credit, and other financial services. In 2014, its parent company PB Fintech has launched policy bazaar to transform the access for personal credits and variety of credit cards with easy and transparent process.

Company provides convenient access to insurance, credit and other financial products and aim to create awareness amongst Indian households about the financial impact of death, disease and damage.

According to the report of Frost & Sullivan, in Fiscal year 2019-2020, Policybazaar was India’s largest digital insurance marketplace with a 93.4% market share based on the number of policies sold. Furthermore, in Fiscal year 2020, 65.3% of all digital insurance sales in India by volume were transacted by Policybazaar.

PB Fintech mainly runs Policy Bazaar and Paisa Bazaar- Policy Bazaar works on India’s online insurance product and service industry and Paisa Bazaar works on India’s online credit industry.

Industry Overview

According to the report of Frost & Sullivan, in Fiscal year 2020, India had a USD 102 billion insurance industry, measured in terms of Total Premium. This industry is expected to grow at a 17.8% CAGR to reach USD 520 billion by Fiscal year 2029-2030, with life, health and other non-life insurance growing at 18.8%, 15.3%, and 13.5% CAGR respectively.

This is digital platform which requires huge Internet penetration and smart phone users to grow; India is expected to have 112.8 crore internet users, 108.3 crore smart phone users by 2030

India is the world’s 10th largest life insurance market, worth USD 76 billion in Fiscal Year 2020 in terms of total premium.

India was the world’s 15th largest non-life insurance market in terms of gross direct premium, worth USD 25 billion in Fiscal Year 2020.



Financials of the Company


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      FY 2020

     FY 2021

Total Assets




Total Revenue




Profit After Tax (PAT)




                                                                                                                                           All amounts are in INR crore

Strengths of the Company

  • Company has created strong consumer brands with Policy Bazaar and Paisa Bazaar. The strength of their brand is reflected in Fiscal 2021, 83% of the premium Company sourced for its Insurer Partners during Fiscal year 2021 and 66% of loans originated on Paisa bazaar through Consumers who came to their platforms directly or through direct online brand search.
  • Strong consumer-friendly brands that offer a wide choice, transparency, and convenience to users.
  • Company has large, well-organized, and smart networks of 51 insurer partners and 54 lending partners, providing consumers financial services products.
  • Policy Bazaar is India’s largest digital insurance marketplace.
  • Government of India has launched various initiatives to enhance this market; it includes India stack, Pradhan Mantri Jan Dhan Yojana, Prahdan Mantri Mudra Yojana, Pradhan Mantri Jeevan Jyoti Beema Yojana, and Ayushman Bharat Pradhan Mantri Jan Aarogya Yojana.
  • Company to utilize its proceeds for its growth. Company to build an offline network of 15 stores.
  • Company follows capital proficient model with low operating costs.

Risk Factors

  • Company operates in dynamic and competitive online fin tech industries.
  • Any harm to its brand failure can affect cash flows and profitability of the company.
  • Dependency on cooperation with its insurer and lending partner.
  • Company is having a history of losses and an anticipated increase in expenses in future.
  • If company unable to comply regulatory and various laws governing the insurance can adversely affect its business.

Peers and Competitors

There is no listed peer of PB FinTech operates in this industry.

Objectives of the IPO

  • Policy bazaar to invest in the overseas business present in the UAE.
  • Policy bazaar will spent some proceeds for general corporate purposes.
  • New opportunities to expand customer base including its offline presence.
  • Strategic investment and acquisitions.

My Observation

Keeping all the things on attractions, this IPO seems good to invest in. The financials of the company is not profitable but growth on its revenue can be seen, even in the time of Covid-19, company somehow has maintained the growth and declined its losses. Company is having strong brand name and popular among the people. This IPO can be good for listing gains as well as for long term wealth creation.

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