PolicyBazaar – PB Fintech Limited 2023

PolicyBazaar – PB Fintech Limited is an India-based company that provides an online platform for insurance and lending products by leveraging the power of technology, data and innovation. The Company is engaged in providing online marketing, consulting and technology services to insurer and lending partners. It provides access to insurance, credit and other financial products. PB Fintech Limited – PolicyBazaar offers Policybazaar and Paisabazaar platform that addresses the online insurance and lending markets. The Policybazaar platform is an online platform for consumers and insurer partners to buy and sell core insurance products.

PB Fintech Limited – PolicyBazaar is an independent digital lending platform that enables consumers to compare, choose and apply for personal credit products. Its platforms serve consumers with varied needs, credit profiles, demographics, employment types and income levels. Through its consumer- centric approach, the Company seeks to enable online research-based purchases of insurance and lending products.

PB Fintech Limited – PolicyBazaar has built India’s largest online platform for insurance and lending products leveraging the power of technology, data, and innovation. It provides convenient access to insurance, credit, and other financial products and aims to create awareness amongst Indian households about the financial impact of death, disease, and damage. PB Fintech Limited – PolicyBazaar was launched in 2008 to respond to Consumers’ need for more awareness and choose the best options for insurance available in the market.

PB Fintech Limited – PolicyBazaar has been successful in building India’s largest online marketplace for insurance and lending products, leveraging the power of technology, data, and innovation. The company offers online research-based purchases of insurance and lending products. It further facilitates partners to innovate and design customized products for consumers by leveraging extensive data insights.

PB Fintech has two flagship products:

• Policy Bazaar (100% subsidiary) – It basically caters to consumer demand for higher awareness, choice, and transparency towards the online sale of insurance products. It has thus evolved as India’s largest digital insurance marketplace, with market share of 93.4% (based on the number of policies sold); it constituted 65.3% of the digital insurance sales in India by volume as of FY20. It has partnered with ~51 insurers, and ~48m consumers have registered on its platform.
• Pisabazaar (100% subsidiary) is the largest digital consumer credit marketplace, with market share of 51.4% on the basis of disbursals. It began its operations in FY14 with the goal to transform personal credit access by offering ease, convenience, and transparency in selecting a variety of consumer credit products. It is widely used to access credit scores, with ~21.5m consumers as of Mar’21. It has partnered with ~54 lenders across banks, NBFCs, and fintechs offering a wide choice of consumer credit products,such as personal loans, business loans, credit cards, home loans, and LAP.

SWOT Analysis

1. Strength

• Leading Player in Online Insurance Distribution
• Policy Bazaar: Synonymous with insurance in India. Go-to platform for buying and selling insurance.
• Recently obtained broker approval from SEBI, enabling them to engage in corporate business.

2. Weekness

Selling health insurance online is challenging because it requires advisors to explain product features, coverage details, and exclusions. Additionally, advisors’ profitability is heavily reliant on the commissions paid by companies, so any reduction in commissions could impact their earnings.

3. Opportunities

• Premiums sold online are much lower in India compared to China and the US.
• The improved telecom network and more smartphone users have made it easier for people to buy insurance and loans online.
• The total Gross Written Premium for General Life in the financial year 2020-2021 is around 2 lakh crores. This is only 1% of India’s GDP, while the global average is 2.8%. This shows that there is a big opportunity for non-life insurance business, especially with more people using telecom services, leading to an increase in online policy sales.

4. Threats

The new D2C (Direct to Consumer) companies like Go-Digit and Acko are heavily investing in digitizing insurance and underwriting. As more companies focus on going digital first, competition will increase for PB Fintech.

How they have generated revenue in FY20-21?

Commission Income = 35%
Outsourcing Services = 52%
Rewards and Others = 12%

Competitive Strengths

a) Consumer-friendly brands offering a wide choice, transparency, and convenience
b) Collaborative partner for Insurer and Lending Partners
c) Capital efficient model with low operating costs

PB Fintech Limited – PolicyBazaar Shares Details:

Promoters And Management:

1. Mr. Yashish Dahiya is the Chairman, Executive Director and CEO of our Company. He holds a bachelor’s degree in technology from Indian Institute of Technology, Delhi, a post-graduate diploma in management from Indian Institute of Management, Ahmedabad and a master’s degree in business administration from Institut Européen d’Administration des Affaires (INSEAD), France. He was 202 previously associated with ITW Signode India Limited, Bain & Company Inc. (London), eBookers PLC (UK) and CI2I Investments Limited.
2. Mr. Alok Bansal is a Whole-time Director and CFO of our Company. He holds a bachelor’s degree in technology from Shri Shahu Ji Maharaj University, Kanpur and a post-graduate diploma in management from Indian Institute of Management, Calcutta. He was previously associated with Voltas Limited, General Electric International Operations Co. Inc. (India), iGate Global Solutions Limited, Mahindra and Mahindra Limited and FE Global Technology Services Private Limited.

Financials of PB Fintech Limited – PolicyBazaar:

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