PolicyBazaar Fintech Limited, the parent company of Policybazaar, has announced plans to diversify into the healthcare sector by establishing a whollyowned subsidiary.
In a regulatory filing the company revealed that its Board of Directors approved the proposal on December 3, 2024 via a circular resolution.
The new entity, tentatively named PB Healthcare Private Limited or PB Healthcare Services Private Limited, will focus on healthcare services and will have an authorized share capital of ₹5 lakh. PB Fintech will hold 100% ownership, with the subsidiary to be incorporated in India after securing the necessary regulatory approvals.
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Yashish Dahiya, Chairman and Group CEO of PB Fintech highlighted the strategic rationale during the company’s recent earnings call. He emphasized the inefficiencies in the current insurance ecosystem citing a lack of trust between insurers, providers, and customers which leads to inflated costs and complex claims processes.
The new healthcare venture aims to address these issues by streamlining claims management, enhancing customer satisfaction, and fostering faster growth in health insurance adoption.
Strategic Healthcare Partnerships
Dahiya elaborated that the future of healthcare lies in prioritizing the customers lifetime value rather than the current revenue per bed approach. PB Fintech plans to invest up to $100 million in the new venture, focusing on infrastructure and partnerships with hospitals and insurance providers to establish standardized operating procedures.
While financial returns are not the primary goal, the initiative is expected to indirectly benefit Policybazaar by improving the efficiency of the health insurance process and accelerating industry growth by 5% annually.
PB Fintech recently reported strong financial performance, with Q2 FY25 operational revenue rising 43.81% year-over-year to ₹1,167 crore and a profit after tax of ₹51 crore, a significant recovery from the ₹21.11 crore loss reported in the same period last year.
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