The Policybazaar parent, Etechaces Marketing and Consulting, is gearing up for a major fundraising exercise. According to sources, the company is planning to raise as much as $1 billion through a qualified institutional placement (QIP). This move comes after the company’s recent successful round of funding, which saw the participation of top investors such as SoftBank, Info Edge, and Temasek.
The decision to raise funds through a QIP was taken after careful consideration and evaluation of the current market conditions. With the ongoing pandemic and its impact on the economy, the company wanted to wait for the right time to approach investors. Now, with the gradual stabilization of market conditions, the company is confident that it can attract the necessary investments to support its growth plans.
For those unfamiliar with the term, a QIP is a method of raising funds by issuing equity shares to qualified institutional buyers. This allows companies to raise capital without going through the lengthy process of an initial public offering (IPO). It is a popular choice among companies looking to raise funds quickly and efficiently.
The decision to raise $1 billion through a QIP is a testament to the confidence that investors have in the company’s growth potential. This move will not only provide the necessary capital for the company’s expansion plans but also strengthen its financial position. It will also give the company the necessary resources to continue its focus on innovation and technology, which has been a key driver of its success.
Etechaces Marketing and Consulting, the parent company of Policybazaar, has been revolutionizing the insurance industry in India since its inception in 2008. With its user-friendly online platform, the company has made buying insurance a hassle-free and transparent process for millions of Indians. It has also been at the forefront of introducing new and innovative products, such as health insurance policies with COVID-19 coverage, to meet the evolving needs of its customers.
The company’s growth trajectory has been impressive, with a reported revenue of over 800 crores in the last fiscal year. With the insurance market in India poised for significant growth, the company is well-positioned to capitalize on the opportunities. This is evident from the fact that Policybazaar’s market share has been steadily increasing, and it currently commands a significant portion of the online insurance market.
The success of the recent funding round, which saw the company’s valuation reach $2.4 billion, is a testament to the trust and confidence that investors have in the company. The participation of top investors such as SoftBank, known for its investments in companies like Uber and Alibaba, is a clear indication of the company’s potential for growth.
The decision to raise funds through a QIP is a strategic move that will not only provide the necessary capital but also give the company the flexibility to pursue its growth plans without the pressure of going public. It also shows the company’s commitment to its stakeholders, including customers, employees, and investors, by ensuring a stable and sustainable growth trajectory.
In conclusion, the Policybazaar parent’s decision to raise $1 billion through a QIP is a significant development that will further strengthen the company’s position as a leader in the insurance industry. With the support of top investors and a strong financial position, the company is well-equipped to continue its mission of making insurance accessible and affordable for all. As the company’s CEO, Yashish Dahiya, puts it, “This is just the beginning of a new phase of growth for Policybazaar, and we are excited to have the support of our investors in this journey.”
