Financial Giants Acquire Stakes in PB Fintech
American financial services major Capital Group, alongside asset management companies T Rowe Price, Fidelity, and Vanguard, have all made investments in PB Fintech, the company behind insurance marketplace Policybazaar and credit marketplace Paisabazaar. These acquisitions have been made through multiple bulk deals, with several early-stage investors exiting the Gurugram-based company either fully or partially since its IPO in 2021. The founders of the company have also sold some of their shares earlier this year.
Record Inflow of Foreign Investments in India
India has recently seen a record influx of foreign portfolio investments (FPI) into its equities markets, driven by a stable macroeconomic environment and a thriving stock market. In fiscal year 2024, FPIs have bought over Rs 2 lakh crore worth of Indian equities, marking the highest level since 2021, according to National Securities Depository data. Alongside global investors, domestic institutional players have also acquired stakes in PB Fintech.
Mutual Funds Ownership
- Mutual funds currently own 10% of PB Fintech, compared to 7.4% in the previous year.
- During the IPO, their stake was reported at 2.5%.
Insurance Companies Enter the Fray
Interestingly, insurance companies like SBI Life, Max Life Insurance, and Bajaj Life have collectively invested Rs 2,900 crore in the parent company of Policybazaar, India’s largest online insurance marketplace. The market capitalization of the firm as of July 2 stands at Rs 67,686 crore.
Increased Investments in other Tech Companies
Indian and global institutional investors have also shown interest in companies like One 97 Communications, which owns Paytm, and Zomato. These companies have witnessed a rise in stakeholdings by mutual funds and foreign institutional investors compared to previous years.
Stakeholder Changes
- One 97 Communications saw its mutual fund stake increase from 2.5% in June 2023 to 6.2% in March 2024.
- Similarly, FPIs saw their stake rise from 15.6% to 20% during the same period.
- Zomato had its FPI holdings rise from 30% to 45% in March 2024, with mutual funds doubling their stake to nearly 12%.
Significant Exits and Sales
While large institutional investors have been increasing their stakes in PB Fintech, early investors have been exiting or selling their shares at substantial profits. SoftBank, a major shareholder in Policybazaar pre-IPO, fully exited the company, generating significant gains on its investment.
Founders’ Stake Sales
In May, the founders of PB Fintech sold some of their stake in the company. Yashish Dahiya sold 10.8 million shares worth Rs 1,298 crore, while Alok Bansal sold 5.8 million shares worth Rs 768 crore.
Hot Take: FinTech Investments On the Rise 📈
As the financial giants continue to acquire stakes in PB Fintech and other tech companies in India, the landscape of fintech investments is evolving. With significant exits, increased institutional investments, and stake changes, it’s clear that the sector is poised for growth and innovation. Stay tuned for more developments in the dynamic world of financial technology!
By
By
By
By
By
By