PB Fintech to invest Rs 349 crore in financial boost to Policybazaar
PB Fintech on Friday said it has made a further investment of 349 crore in its arm Policybazaar to strengthen the financial health of the subsidiary.
“PB Fintech made a further investment of Rs 349 crore in Policybazaar Insurance Brokers Pvt Ltd, a wholly-owned subsidiary," the company said in a filing.
The present investment seeks to strengthen the financial health of Policybazaar to meet its general operating expenses and enhance brand awareness, office presence and strategic initiatives.
PB Fintech will infuse the funds into Policybazaar in one or more tranches during FY24 and FY25.
PolicyBazaar and PaisaBazaar, which are jointly classified as the core online business for PB Fintech, have seen revenue growth of 46% on a year-on-year basis in the second quarter, one of the highest growth achieved in the past four quarters.
Adjusted EBITDA for the core business improved to Rs 68 crore.
In the September quarter, PB Fintech's revenue surged by 41% YoY, driven by remarkable growth of 129% on YoY basis in the insurance business.
EBITDA margins improved from -39.4% a year ago to -11% in the second quarter, propelled by cost reductions in ESOPs, controlled employee and advertising expenses, resulting in significant operating leverage benefits.
Analysts expect this trend to continue for the foreseeable future.
So far this year, PB Fintech shares had a terrific run with 80% gain on a year-to-date basis.
Post the quarterly results, Keynote Capital has revised its estimates and maintained a ‘Buy’ rating on the stock, with a target price of Rs 968.
«The company stands at a pivotal juncture, driven by catalysts such as renewal commission growth, strategic expansion into tier-2/3 cities through offline channels, and
