PB Fintech, the parent company of Policybazaar, is expanding into healthcare services with a new subsidiary, PB Healthcare. The company will invest Rs 5 lakh in the venture, retaining 100% ownership. The move aims to enhance insurance penetration and claims experience by aligning insurer and hospital interests. Policybazaar’s management emphasizes that the investment is for enablement, not financial returns, and will help the insurance industry grow. The healthcare venture will focus on the middle class, aligning with Policybazaar’s financial inclusion vision.
Policybazaar Set to Disrupt Healthcare Industry with New Subsidiary PB Healthcare
PB Fintech, the parent company of Policybazaar, is making a strategic move. It will expand its offerings beyond insurance. The company has announced its foray into healthcare services. This will be done through the establishment of a wholly-owned subsidiary, PB Healthcare. The new entity is awaiting approval to be named ‘PB Healthcare Private Limited’ or ‘PB Healthcare Services Private Limited’. It will focus on addressing the growing needs of the healthcare industry.
The company announced that PB Fintech will subscribe to 50,000 shares. Each share has a face value of Rs 10. This aggregates to Rs 5 lakh. PB Fintech will retain 100% ownership of the proposed entity.
A Strategic Move to Enhance Insurance Penetration
Policybazaar’s management has emphasized that the healthcare venture is not solely focused on generating financial returns. Instead, it aims to enable the growth of the insurance industry as a whole. The company believes it can create a better experience for customers. It plans to address potential problems in the healthcare services sector. This can ultimately boost insurance penetration.
“We’re not investing in this venture from a financial return perspective. We’re investing from an enablement perspective. This investment benefits Policybazaar significantly. It also benefits the industry,” the management stated during a recent earnings call.
Aligning Interests for Better Claims Experience
The healthcare venture aims to align the interests of insurers and hospitals, enhancing the claims experience for customers. This move is expected to increase insurance penetration, particularly among the middle class. Increasing insurance penetration has been a long-standing goal for Policybazaar.
Alok Bansal is the co-Founder and Executive Vice Chairman of PB Fintech. He has highlighted the need for a healthcare venture. This venture should cater to the middle class. He stresses that it aligns with Policybazaar’s broader vision of financial inclusion.
Growth Plans and Funding
The new healthcare company is expected to generate its own resources for growth. It may attract private equity investors. Other financial institutions might also be interested. This move is seen as a strategic step towards creating a more comprehensive ecosystem for insurance and healthcare services.
Stay tuned for more updates and insights on the stock market!
For more insights on investing in the Indian stock market, check out resources like Moneycontrol and NSE India.
Disclaimer: The opinions and investment advice shared by investment professionals on Narayan Ventures are their own. They do not reflect the views of the website or its management. Narayan Ventures recommends consulting certified experts before making any investment choices.