According to an Economic Times report, SoftBank Vision Fund has invested $130 million in PolicyBazaar’s parent company EtechAces Marketing and Consulting in exchange for a 15% stake at a valuation of $1.5 billion. The investment will be a mix of pre-decided primary infusion of capital into the startup at about $50 million and the purchase of shares worth $80 million.
Softbank has picked the secondary shares at a premium to the valuation at which they originally bought the primary at $1 billion in 2018. The Japanese-investor has picked up the shares from PolicyBazaar’s existing investors including Tiger Global Management, Ribbit Capital, and Inventus Capital India.
SoftBank had earlier invested in the $200 million Series F round in PolicyBazaar. And PolicyBazaar entered the unicorn club with this investment back in 2018. In total, the startup has raised $364 million to date.
Founded by Yashish Dahaiya, Alok Bansal, and Avaneesh Nirjar, the platform allows users to buy life insurance and general insurance products. It features products from all major insurance companies in India and helps its users to compare and decide which policy best suits their needs.
The startup also operates two sister companies, PaisaBazaar and DocPrime. PaisaBazaar is a lending marketplace that was launched in 2014 as a financial advisory platform and has grown to loans, credit cards, saving accounts, and several other financial products. Due to the demand crisis in the lending sector, PaisaBazaar reportedly laid off 1,500 people earlier this month.
Reportedly, SoftBank also accrued $17.7 billion in losses in the financial year ending in March 2020. It’s operating loss stood at $12.7 billion and net income loss at $894 million. This was the first time the Japanese investor suffered losses in the last 15 years of its operation.
SoftBank has invested more than $10 billion in Indian startups including Ola Electric, OYO, Paytm, Housing.com, Ola, Grofers, FirstCry, Lenskart, and Delhivery.