PB Fintech, the parent company of insurance aggregation platforms PolicyBazaar and Paisabazaar, saw its share price jump over 4% after the company's CEO confirmed plans to enter the healthcare sector.
As per reports, PB Fintech is looking to make a one-time investment of $100 million to acquire a 30% stake in a new healthcare company, pending approval from its board. Explaining the rationale, CEO Yashish Dahiya mentioned the large gap between what healthcare services cost and what the average Indian can afford to pay. Through this foray, PB Fintech aims to bridge that gap by leveraging its technology expertise.
Speculations around the company's healthcare venture first surfaced last week in an exchange filing. PB Fintech's focus on financial inclusion and technology solutions makes the sector a strong strategic fit. Since listing in 2021, investors have rewarded PB Fintech with sizable returns of over 67% against its issue price.
Brokerage firm Bernstein maintained its ‘outperform' rating for PB Fintech following the announcement, noting investors' positive view of the company's growth potential, robust business model and cash generation ability. Financial results further endorse this outlook, with PB Fintech reporting its third consecutive profitable quarter in Q1 FY25.
By diversifying into the large and underpenetrated Indian healthcare market, PB Fintech aims to continue enhancing value for shareholders while furthering its mission of expanding access. If successfully executed, the move could enable the platform to embark on new opportunities for growth and resonance with its core proposition of empowering consumers.
