About the Company:
PB Fintech Ltd has built India’s largest online platform for insurance and lending products leveraging the power of technology, data and innovation.
In Fiscal 2020, Policybazaar was India’s largest digital insurance marketplace among all online insurance distributors with 93.4% market share based on number of policies sold.
In 2014, company launched Paisabazaar with the goal to transform how Indians access personal credit by accentuating ease, convenience and transparency in selecting a variety of personal loans and credit cards.
Paisabazaar was India’s largest digital consumer credit marketplace with a 53.7% market share, based on disbursals in Fiscal 2021.
Paisabazaar is also widely used to access credit scores, with approximately 22.5 million Consumers cumulatively having accessed their credit score through our platform as of June 30, 2021.
Company’s Policybazaar and Paisabazaar platform offerings address the large and highly underpenetrated online insurance and lending markets.
Company has an asset-light capital strategy and do not underwrite any insurance or retain any credit risk on our books. Policybazaar is registered with and regulated by IRDAI as a direct (life and general) insurance broker.
Product offerings through Policybazaar:
- Motor insurance.
- Travel insurance.
Product offerings through Paisabazaar:
- Unsecured loans.
- Credit cards.
- Secured loans.
- Credit score.
How does Company generate revenue?
(i) for Policybazaar business, from insurance commission that company receive from Insurer Partners, and additional services that we provide to Insurer Partners such as telemarketing and other services relating to sales and post-sales services, account management, premium collection and various other services,
(ii) for Paisabazaar business, from the commission that company receive from our Lending Partners, credit advisory and related services that we provide to our Consumers or Lending Partners, and marketing services that we provide to financial services partners and other third parties.
(iii) for PB Fintech Ltd, from providing online marketing, consulting and technology services to Insurer and Lending Partners.
Policybazaar Business:
Policybazaar is an online platform for Consumers and Insurer Partners to, respectively, buy and sell core insurance products.
As of March 31, 2021, over 48 million Consumers have registered on Policybazaar platform and purchased over 19 million policies from Insurer Partners.
In Fiscal 2021, the annual number of visits on Policybazaar website was 126.5 million.
As of September 30, 2021, 48 Insurer Partners have offered over 390 term, health, motor, home and travel insurance products on our Policybazaar platform, representing a substantial portion of all licensed insurance companies in India.
Policybazaar offers Consumers an information-rich, user-friendly, and tech-driven self-service platform for
i) pre-purchase research
ii) purchase, including application, inspection, medical check-up and payment.
iii) post-purchase policy management, including claims facilitation, renewals, cancellations and refunds.
Paisabazaar Business:
Paisabazaar is an independent digital lending platform that enables Consumers to compare, choose and apply for personal credit products.
Company has built 56 partnerships with large banks, NBFCs and fintech lenders who offer a wide choice of product offerings on our platform across personal credit categories, including personal loans, business loans, credit cards, home loans and loans against property.
During Fiscals 2019, 2020, 2021, Paisabazaar enabled disbursals of Rs.5101.5 crores, Rs.6549.6 crores, Rs.2916.8 crores respectively.
Management Team:
- Mr. Yashish Dahiya (Designation: Chairman, Executive Director and CEO)
- Mr. Alok Bansal (Designation: Whole-time Director and CFO)
Objectives of the Issue:
Offer for Sale: (Rs. 1935 cr)
- Each of the Selling Shareholders will be entitled to the respective proportion of the proceeds of the Offer for Sale. Company will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Rs. 3750 cr)
- Enhancing visibility and awareness of our brands, including but not limited to “Policybazaar” and “Paisabazaar”.
- New opportunities to expand our Consumer base including our offline presence.
- Strategic investments and acquisitions.
- Expanding our presence outside India.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Enhancing visibility and awareness of our brands, including but not limited to “Policybazaar” and “Paisabazaar” |
1500 |
| New opportunities to expand growth initiatives to increase our Consumer base including offline presence |
375 |
| Funding Strategic investments and acquisitions | 600 |
| Expanding our presence outside India | 375 |
Peer Group Comparison:
There are no listed companies in India that engage in a business similar to that of PB Fintech Ltd. Accordingly, it is not possible to provide a comparison with listed industry peers in relation to the Company.
Positives for the Company:
Huge Market Opportunity for Policybazaar.
- The market for insurance products in India is estimated to be Rs.7.6 trillion (US$102 billion) in total premium in Fiscal 2020 across life and non-life insurance and is expected to grow to Rs.39.0 trillion (US$520 billion) by Fiscal 2030 at a CAGR of 17.8%.
- Policybazaar was India’s largest digital insurance marketplace with a 93.4% market share based on the number of policies sold in Fiscal 2020.
- Further, in Fiscal 2020, Policybazaar constituted 65.3% of all digital insurance sales in India by number of policies sold (including online sales done directly by insurance companies and by insurance distributors.
- The high under penetration of insurance products combined with our compelling Policybazaar platform presents abundant market opportunities for us to capture through working closely together with our Insurer Partners.
Huge Market Opportunity for Paisabazaar.
- In Fiscal 2021, only 1.0% of disbursals were through digital marketplaces in India.
- Paisabazaar was India’s largest digital consumer credit marketplace with a 53.7% market share based on disbursals in Fiscal 2021. This represents a meaningful market opportunity for Paisabazaar’s current digital lending offering to tap, in collaboration with our Lending Partners.
Company has created strong, Consumer-friendly brands offering wide choice, transparency and convenience.
- Company offers wide choice, transparency and the ability for Consumers to research and access insurance and personal credit products offered by Insurer and Lending Partners.
- Through Consumer centric approach, company has created strong brands in both Policybazaar and Paisabazaar which is recognised throughout India.
Company plans to Pursue international expansions.
- Company has begun to expand in the Middle East with operations in Dubai, and plan to scale up operations and brand presence in Dubai and in the broader Gulf Cooperation Council (“GCC”) region by investing in creating a strong brand, building a robust team to cater to the prospective consumers.
- Company may also pursue similar opportunities in select Southeast Asian countries by replicating our proven business model in India along with exploring inorganic growth opportunities.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 30th June 21 |
|---|---|---|---|---|
| Revenue | 528.8 | 855.5 | 957.4 | 258.1 |
| Net Profit | (-346.8) | (-304.0) | (-150.2) | (-110.8) |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 1st November 2021 |
| Issue Closes on:. | 3rd November 2021 |
| Issue Price | Rs.940 – 980 |
| Face Value | Rs.10 |
| Retail Category Allocation | 10% |
| Minimum Lot | 15 Shares |
| Minimum Investment | Rs.14,700 |
| Issue Constitutes | 12.9% |
| Issue Size | Rs.5685 cr ($758 million) |
| Market Cap | Rs.44,050 cr ($5.87 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 3,82,65,306 |
| Equity Shares Offered (OFS) | 1,97,44,898 |
| Equity Shares Prior | 41,12,34,500 |
| Equity Shares after the issue | 44,94,99,806 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 10th November 2021 |
| Initiation of Refunds | on or Before 11th November 2021 |
| Credit of Equity Shares: | on or Before 12th November 2021 |
| Listing Date: | on or Before 15th November 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 1,93,29,621 | 0.62 | 2.30 | 27.52 |
| NII | 91,09,539 | 0.06 | 0.24 | 8.15 |
| Retail | 60,73,026 | 1.23 | 2.12 | 3.45 |
| Employee | ———— | —- | —- | —- |
| TOTAL | 3,45,12,186 | 0.58 | 1.71 | 17.86 |
Note: Retail Subscription on the basis of Applications: 2.82x
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| (-4.11) | N.A | (-7.54%) | 54.52 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| PB Fintech Limited Plot No. 119 Sector 44, Gurgaon Haryana 122 001, India Telephone: +91 124 456 2907 E-mail: investor.relations@pbfintech.in Website: www.pbfintech.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C 101, 247 Park L.B.S. Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India Telephone: +91 22 4918 6200 E-mail: policybazaar.ipo@linkintime.co.in Website: www.linkintime.co.in |
