PB Fintech Invests INR 539.4 Cr in New Healthcare Subsidiary

This strategic dilution is part of the company's plan to attract external funding. It includes creating an Employee Stock Option Plan (ESOP) to attract and retain top healthcare talent.

PB Fintech, the parent company of Policybazaar and Paisabazaar, has invested INR 539.4 crore in its newly incorporated healthcare subsidiary, PB Healthcare Services Private Limited. 

The investment represents the first tranche of a broader INR 1,461.6 crore seed funding round, including contributions from PB Fintech and external investors. The funding plan had been previously approved through a shareholder postal ballot.

Strategic Stake Dilution to Attract Capital

The capital infusion was completed on April 24 through the subscription of 5.39 crore Compulsory Convertible Preference Shares at INR 100 per share.

Following this transaction, PB Fintech's stake in PB Healthcare will dilute from 100% to 32.14% on a fully diluted basis.

This strategic dilution is part of the company's plan to attract external funding. It includes creating an Employee Stock Option Plan (ESOP) to attract and retain top healthcare talent.

In a statement, PB Fintech highlighted that the investment is intended to strengthen PB Healthcare's financial base and accelerate its ambitious growth plans.

Expanding into Hospital Services

PB Healthcare Services Private Limited, incorporated in January 2025 and headquartered in Gurugram, plans to set up hospitals with a capacity of up to 1,000 beds within its first year of operations. These managed healthcare services will be specifically tailored for Policybazaar's existing customer base.

The healthcare venture marks a significant diversification for PB Fintech, which is traditionally known for its dominance in the digital insurance and lending sectors. 

The company sees healthcare as a natural extension of its offerings, particularly given the growing demand and gaps in India's medical infrastructure.

PB Healthcare currently has an authorized capital of INR 2,500 crore but has not yet reported any turnover due to its recent formation.

PB Fintech posted strong financial performance for the December quarter of FY25, with revenue rising 48% year-on-year to INR 1,292 crore and net profit nearly doubling to INR 72 crore. 

The new healthcare initiative is expected to leverage this momentum and broaden the company's footprint in the Indian services market.

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