Online insurance seller PolicyBazaar has raised Rs 119 crore from undisclosed investors. Info Edge, which had 32% stake in the company informed the BSE that its stake has been diluted to 23%.
Info Edge, which has put in a total of Rs 32.5 cr including the first institutional funding of Rs 20 cr in september 2008, is not participating in this round of funding.
PolicyBazaar had raised Rs 27.5 crore in Series B funding from investors including Inventus Capital and others in April 2013.
In January 2014, Policybazaar had exceeded the FDI limit of 26% set by the Insurance Regulatory and Development Authority (IRDA). Info Edge was the only Indian investor at that point. With the latest round of funding, is Policybazaar addressing this concern?
The previous government was planning to raise the cap on FDI in insurance sector to 49%. However, that has not materialized. The new government, led by the BJP is expected to relook at the UPA government’s FDI policy. The BJP government at the center is against Foreign Direct Investment in Multi-brand retail. This may not necessarily be the government’s stand with respect to the insurance sector.
In 2013, 70% of online insurance sale happened through PolicyBazaar. By 2015, the online insurance industry is expected to grab 25-30% of the overall insurance market; as with e-Commerce, 2 to 3 big players are expected to emerge.
Info Edge Investments
As per the financials release by Info Edge India, it has investments in Zomato.com, Meritnation.com, Policybazaar.com, Canvera.com, Mydala.com, happilyunmarried.com and allheckdeals.com. These investments incurred an operating loss of 114 cr EBITDA in FY14.