Japanese conglomerate SoftBank has successfully completed a full exit from PB Fintech, the parent entity of renowned insurance aggregator PolicyBazaar, securing returns of approximately $650 million on its initial investment. SoftBank initially invested close to $200 million in PB Fintech during its formative stages.
In a strategic move last December, SoftBank concluded multiple block deals, divesting a 2.53% stake in PB Fintech and generating a cumulative amount of INR 913.7 crore, marking the final stage of its exit from the insurance aggregator. The conglomerate, represented by Svf Python II (Cayman) Ltd, had held a 4.39% stake in PB Fintech as of the end of September.
SoftBank had previously divested an additional 2.5% stake in PB Fintech in October, raising proceeds of INR 871 crore. Over the last 12 months, SoftBank has consistently reduced its stakes in several listed Indian startups, including high-profile exits from Paytm, Zomato, PB Fintech, and Delhivery.
In total, SoftBank sold stakes amounting to $1.8-1.9 billion during public offerings and subsequent post-listing sales. The conglomerate also executed a block deal worth INR 1,127 crore, involving the sale of 9.35 crore shares of foodtech giant Zomato in December.
Despite the series of exits, SoftBank remains a prominent institutional shareholder in Ola Electric and FirstCry, both of which recently filed draft papers for their upcoming initial public offerings. However, after a dry spell lasting nearly 18 months, SoftBank is gearing up to re-enter the Indian startup investment landscape and is expected to resume signing deals with startups in the near future.
Meanwhile, Policybazaar, under the umbrella of PB Fintech, demonstrated robust performance by recording insurance premiums totaling INR 3,475 crore in the second quarter of FY24, a notable increase from INR 2,545 crore in the corresponding period of the previous fiscal year. PB Fintech witnessed a substantial year-on-year decline of over 89% in net loss, reaching INR 21 crore in the quarter ended September 2023. This marks a significant improvement compared to the net loss of INR 187 crore reported in Q2 FY23.
As of Thursday’s trading session, PB Fintech shares were valued at INR 871.85 on the Bombay Stock Exchange (BSE) at 9:30 am.
