PB Fintech, the parent company of Policybazaar and Paisabazaar, has invested Rs 539.4 crore into its healthcare subsidiary, PB Healthcare Services. This forms the first tranche of a larger Rs 1,461.6 crore seed funding round that also includes external investors.
The investment, approved by shareholders through a postal ballot, was made by subscribing to 5.39 crore Compulsorily Convertible Preference Shares (CCPS) at Rs 100 each, as per a stock exchange filing. The funding round will also set up an Employee Stock Option Plan (Esop) pool.
Following this round, PB Fintech’s ownership in the subsidiary will drop from 100% to 32.14% on a fully diluted basis. The move is part of a broader strategy to strengthen PB Healthcare’s finances, fuel its expansion, attract outside investors, and incentivize talent retention through Esops.
In January, PB Healthcare Services was incorporated as a wholly-owned arm after board approval last year. It aims to build hospitals with a capacity of 1,000 beds within its first year, primarily serving Policybazaar policyholders with managed healthcare services.
Additionally, PB Fintech’s board recently cleared a proposal to invest up to Rs 696 crore in the healthcare unit during FY 2025-26 through equity or CCPS. The company has shown strong growth, reporting a 48% year-on-year rise in operating revenue to Rs 1,292 crore in the December quarter of FY25, with net profit doubling to Rs 72 crore from Rs 37 crore.
