India’s insurance aggregator Policybazaar is planning to raise USD 150M as buffer capital in the company during the third quarter of the current fiscal year.
The company is looking to work towards capital efficiency, invest in customer services and to consolidate the operations as the company looks to swing back into probability this fiscal year.
Although the company doesn’t require capital for business expansion, it may raise some funds as a buffer for unforeseen events, said Yashish Dahiya, Policybazaar.com Group CEO and Co-founder.
“We might raise some capital as a buffer. You never know what will happen in the future. This year COVID happened. What if something else happens in the future? We may raise about USD 150 million, but that is more for safety than for any plan.[2] It may happen in Q3,” he said.
Meanwhile, Policybazaar expects to return to profitability this fiscal on the back of surge in demand for insurance products amid the COVID-19 pandemic.
The founders believe that this and the coming years will be profitable for them. Growth over the last year of the company is between 70 % and 100 %, depending on insurance products. However FY2019 was not so profitable.
Despite running in loss since past two years, the company’s revenue jumped three-fold and the founders predict that the company would double both market share and valuation in the end of FY2020.
During the year 2020-21, Mr. Dahiya said the company should log revenue of approx. USD 150 million and post a marginal profit. On the insurance premium side, he said the current fiscal would close with USD 801.07 million as against USD 534.05 million in FY20.
Talking about the other business– Paisabaazar , he explained there was initially some stress as demand for loans had come down significantly due to the coronavirus crisis.
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