After raising $40 million in series D round from Premji Invest and others, Gurgaon-based, online financial services platform Policybazaar is now looking to raise $50 million to fuel its growth strategy. The company has received around $70 million in 5 Rounds from 14 Investors so far, and is said to be valued at $235 million. The new funding will be used for Policybazaar’s expansion plans.
“Our previous funding was not a very big raise in today’s world. Everyone is raising a lot of money, even those at a very early stage and unproven business models,” Policybazaar’s CEO Yashish Dahiya told DealStreetAsia. “It makes a lot of sense for us to raise $50-70 million at this time when valuations are high and raising funds is cheap, and ours is a proven business model.”
Launched in June 2008 by Yashish Dahiya along with Avaneesh Nirjar and Alok Bansal, Policybazaar is an online insurance aggregator that helps to compare the prices and key features of different financial products like Life Insurance, General Insurance, Loans and Credit Cards. It helps to get free insurance quotes and one can compare plans based on multiple features. The company had also launched its app for Android and iOS users.
The firm gets 24% of its traffic from mobile devices, as customers want to take their time to make a decision so they search and read about products on our app, but make the transaction later on a desktop, added Dahiya. he also said that the company aims to make around $80 million in revenue from insurance premiums. Policybazaar has made partnership with more than 35 financial institutions and gets around 20,000 visits per day.
It had incubated PaisaBazaar in February 2014, which also has a similar model and sells loans, credit cards and mutual funds. As per a study by Google, online insurance buying to be a $46 billion industry by 2020. Invetsors also showing deep interest to fund startups operating in this space. In July this year, Bankbazaar, that gives its users instant customized rate quotes on loans and insurance products, raised $60 million in its Series C round of funding led by Amazon with participation from Fidelity Growth Partners and Mousse Partners.