Chinese technology behemoth Tencent has picked up 10% stake in insurance marketplace Policybazaar at a valuation of USD 1.5 billion, Bloomberg reported citing a person in the know.
Tencent bought half of Tiger Global Management’s stake in the company for USD 150 million.
Policybazaar is an insurance aggregator website that compares financial services from major insurance companies. The existing backers of the Gurgaon-based company include SoftBank, Tiger Global, Temasek Holdings and Chiratae ventures.
Tencent has stakes in many Indian startups including ride-hailing service Ola, education platform Byju’s and food delivery platform Swiggy.
Earlier this year, the Shenzhen-headquartered company also participated in the Series B round of digital banking startup NiYo Solutions.
Founded in 2008 by Alok Bansal, Avaneesh Nirjar and Yashish Dahiya, PolicyBazaar Group has two entities: PolicyBazaar and PaisaBazaar.
Policybazaar is operated by ETech Aces Marketing and Consulting Pvt. The aggregator specialises in making comparative analysis of the insurance products of various insurance policies based on price, quality and key benefits.
Policybazaar competes with Easypolicy, Coverfox Insurance, and MintWise. The company also offers options for investment, including retirement and tax-saving plans.
Gross premiums written in India reached USD 94.48 billion in FY18, with USD 71.1 billion from life insurance and USD 23.38 billion from non-life insurance. Overall insurance penetration in India reached 3.69 per cent in 2017 from 2.71% in 2001, according to a report by India Brand Equity Foundation.