Indian on-line insurance coverage aggregator PolicyBazaar has filed for an preliminary public providing by which it’s in search of to lift $809 million, turning into the fourth startup previously two months from the South Asian market to discover public markets.
In papers submitted to the market regulator in India, PolicyBazaar mentioned it’s seeking to elevate $504 million by issuing new shares whereas the remaining will likely be pushed by sale of shares by current traders. Native media experiences mentioned the startup is seeking to elevate at a valuation of as much as $6 billion.
The 12-year-old startup — backed by SoftBank, Falcon Edge Capital, Tiger International, and InfoEdge — mentioned it might take into account elevating about $100 million in a pre-IPO spherical.
PolicyBazaar serves as an aggregator that enables customers to match and purchase insurance policies — throughout classes together with life, well being, journey, auto and property — from dozens of insurers on its web site with out having to undergo typical brokers. It operates in India in addition to the Center East.
In India solely a fraction of the nation’s 1.3 billion folks at the moment have entry to insurance coverage and a few analysts say that digital companies might show essential in bringing these providers to the lots. In accordance with score company ICRA, insurance coverage merchandise had reached lower than 3% of the inhabitants as of 2017.
A median Indian makes about $2,100 in a yr, based on World Financial institution. ICRA estimated that of these Indians who had bought an insurance coverage product, they had been spending lower than $50 on it in 2017.
In a report early this yr, analysts at Bernstein estimated that PolicyBazaar instructions 90% of share within the on-line insurance coverage distribution market. The platform, which competes with Acko in addition to Amazon in India, additionally sells loans, bank cards and mutual funds. The startup says it sells over 1,000,000 insurance policies a month.
“India has an under-penetrated insurance coverage market. Inside the under-penetrated panorama, digital distribution by means of web-aggregators like Policybazaar types <1% of the business. This affords a big headroom for progress,” Bernstein analysts wrote to purchasers.
Zomato, which had a stellar public debut final month, in addition to fintech companies Paytm and MobiKwik have filed for his or her preliminary public choices in current weeks.