PB Fintech, the parent company of Policybazaar and Paisabazaar, is planning to invest up to $100 million for a 20-30% stake in a new healthcare company, according to Yashish Dahiya, Chairman and Group CEO. This move, however, is subject to board approval.
At an event on September 28, Co-Founder and Executive Vice Chairman Alok Bansal emphasized the importance of entering the healthcare sector, particularly for India’s middle class.
Bansal noted the need to address issues like hospital over-treatment and fraud, which impact consumer trust. He explained that without building trust, middle-class consumers might not commit to buying healthcare services, even if they consider it.
Dahiya confirmed that PB Fintech’s $100 million investment would be a one-time contribution, with no plans for further recurring investments. He also pointed out that while healthcare demand in India is strong, it’s essential to cater to the middle class, who cannot afford high hospital costs.
Brokerage firm Bernstein maintained its “outperform” rating for PB Fintech, setting a price target of ₹1,760. However, they also noted that some investors may be concerned about this move into healthcare, which marks a shift from PB Fintech’s traditional capital-light business model.
