In a major strategic shift, PB Healthcare Services, formerly a wholly-owned subsidiary of PB Fintech is raising INR 1,461.6 crore (~USD 171 million) in a seed funding round that marks both a foray into healthcare and a new ownership structure. With this funding, PB Fintech’s stake in PB Healthcare has been diluted from 100% to 32.14%, making the vertical an independent entity with a broader set of investors. This fundraising is massive for a seed funding round, signals the company’s growth potential.
First Tranche Started with INR 539 Cr from PB Fintech
The first tranche of this funding has begun with an investment of INR 539.4 crore from PB Fintech — the parent company of Policybazaar and Paisabazaar. This is part of the INR 696 crore that was approved by PB Fintech’s shareholders to invest in PB Healthcare through equity shares or Compulsory Convertible Preference Shares (CCPS) in FY2025-26.
The initial investment was done by subscribing to 5.39 crore CCPS at INR 100 per share, as disclosed in the NSE and BSE filings.
Stake Dilution & ESOP Pool Creation
The funding round includes investments from external investors and senior leadership, resulting in a dilution of PB Fintech’s stake to 32.14% on a fully diluted basis. PB Fintech cofounders Yashish Dahiya and Alok Bansal, along with three senior executives, have invested INR 132.75 crore for a combined 6.61% equity stake. The other investors are not disclosed yet.
An Employee Stock Option Plan (ESOP) pool has also been created as part of the round to attract and retain top talent in what PB Fintech acknowledges is a long-term, high-stakes play.
Strategic Shift: From Incubation to Independence
PB Fintech’s CEO Yashish Dahiya said the company’s role in PB Healthcare is that of an incubator and catalyst, not a long-term operator. “PB Fintech is not the long-term owner or driver of this project,” he said in an interview recently, adding that its stake could be limited to around 25%. This is in line with PB Fintech’s asset-light strategy to create new verticals and bring in external expertise and capital into the healthcare business which is more asset heavy.
Ambitious Healthcare Rollout Ahead
Founded in January 2025 with an authorised share capital of INR 2,500 crore and an initial paid-up capital of INR 5 lakh, PB Healthcare Services is all set to start operations by December 2025. The company plans to have 1,000 beds in its first year, starting with NCR and then expanding to other metro cities in phases.
PB Healthcare will provide a “managed healthcare” experience especially for Policybazaar policyholders. The model will have a seamless, potentially cashless service framework that eliminates pre-authorizations and cumbersome claims process — a first in India’s insurance linked healthcare services.
From Fintech to Healthtech
PB Fintech’s foray into healthcare is a big departure from its asset light, digital first insurance and credit marketplace business. The move has raised eyebrows from some analysts. In October 2024, Bernstein had warned investors about the risks of entering the capital intensive healthcare space.
But PB Fintech is undeterred. The company reported strong numbers in Q3 FY25 with operating revenue up 48% y-o-y to INR 1,292 crore and net profit almost doubling to INR 72 crore.
Market Reaction and Future Outlook
After the funding announcement, PB Fintech shares rose 0.40% to close at INR 1,668.75 per share on BSE. Investors seem cautiously optimistic as the company ventures into a sector with huge social and commercial potential.
As PB Healthcare goes live, the industry will be watching how the company balances growth, operational efficiency and its promise of healthcare transformation. Full details of the healthcare vertical will be out in PB Fintech’s Q4 FY25 report. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.