Policybazaar’s parent company, PB Fintech, announced on Thursday that it has secured $218 million in seed funding for its newly launched healthcare venture, PB Health. This move marks the company’s foray into India’s rapidly expanding healthcare sector.
Chairman Yashish Dahiya said the company will use the funds to build four to five hospitals in the New Delhi region by 2027 and aims to expand the network to 25 to 30 hospitals across 10 major Indian cities in the long term.
The funding round includes a $50 million investment from Silicon Valley-based General Catalyst, which previously led a $340 million round in Mumbai’s quick commerce startup Zepto and is also an investor in Indian startups like Cred and Spinny.
Policybazaar is India’s leading insurance aggregator, offering health, life, and motor insurance products on behalf of various insurance providers.
“Providing quality affordable healthcare in India is a complex challenge. We believe one way to tackle this issue is through the world of insurance,” Dahiya said.
PB Fintech is committing an initial investment of approximately $62 million; consequently, it will secure a 26% stake in PB Health, according to chairman Yashish Dahiya. However, he did not disclose the identities of the other shareholders.
A report by EY and IVCA states that private investors poured $3.2 billion into 84 private equity and venture capital deals in India’s healthcare sector in 2024, up from 62 deals worth $5 billion in 2023.
“We believe India has a unique opportunity to leapfrog legacy models and build a resilient, inclusive health assurance system,” Neeraj Arora, MD of General Catalyst said in a statement.
This investment follows General Catalyst’s expansion in India last year, when it merged with local venture firm Venture Highway and allocated between $500 million and $1 billion for new investments in the country.
PB Fintech’s entry into the healthcare space with PB Health marks a strategic diversification beyond insurance. By leveraging the momentum in India’s booming private healthcare sector, the company is expanding its footprint into a high-growth industry. Furthermore, backed by substantial funding and prominent investors like General Catalyst, the venture is well-positioned to make a significant impact on India’s medical infrastructure in the coming years.
