Global Firms Acquire Majority Stake in PB Fintech as Early Investors Exit | July 3, 2024

Gurugram-based fintech firm PB Fintech, which operates insurance marketplace Policybazaar and credit platform Paisabazaar, has seen a surge in interest from global and domestic institutional investors. Several early-stage investors in the company have exited their positions, either fully or partially, through bulk deals since the firm went public in 2021.

American financial services major Capital Group, as well as asset management firms T. Rowe Price, Fidelity, and Vanguard, have all acquired significant stakes in PB Fintech. Capital Group now owns around 10% of the company through various investment vehicles, according to a person familiar with the matter.

Here are the main highlights:

• Foreign portfolio investors (FPIs) have been actively acquiring shares in PB Fintech. This includes prominent names like Capital Group, T Rowe Price, Fidelity, and Vanguard. Capital Group, through various investment vehicles, now holds approximately 10% of the company.
• These transactions have occurred through bulk deals, reflecting a trend of early-stage investors exiting the firm fully or partially since its IPO in 2021. PB Fintech’s founders, Alok Bansal and Yashish Dahiya, have also sold some shares earlier this year.
• The influx of FPI investment comes at a time of record inflow into Indian equities markets. This is driven by a stable macroeconomic environment and a booming stock market. FPIs have invested over Rs 2 lakh crore in Indian equities in FY24, marking the highest investment since 2021.
• Domestic institutional investors have also increased their stake in PB Fintech. Mutual funds now own 10% of the company, up from 7.4% in June 2023.
• Insurance companies have also shown interest in the company. Life insurance firms like SBI Life, Max Life Insurance, and Bajaj Life have collectively invested Rs 2,900 crore in PB Fintech.
• The company’s market capitalization currently stands at Rs 67,686 crore.
• PB Fintech is not the only company attracting significant institutional investment. One 97 Communications (Paytm) and Zomato have also seen substantial increases in FPI and mutual fund holdings.
• SoftBank, a major shareholder in Policybazaar before the IPO, has completely exited the company at significant gains. The Japanese technology investor earned around $650 million on an investment of $200 million.
• PB Fintech’s founders, Yashish Dahiya and Alok Bansal, sold some of their shares in May 2024. Dahiya sold 5.4 million shares worth around Rs 700 crore, while Bansal sold 2.9 million shares worth approximately Rs 377 crore.

PB Fintech’s strong performance and the increasing adoption of digital financial services in India have attracted significant investment, leading to a flurry of activity in the company’s shareholding.

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