Policybazaar Journey from Startup to Insurance Leader

Policybazaar was founded in 2008 by Yashish Dahiya, Avaneesh Narayan, and Alok Bansal, with the goal of making insurance more accessible and affordable for Indians.

The company started with a small team and a modest office in Gurgaon, but it quickly gained momentum with its innovative approach to insurance sales.

Policybazaar's early success can be attributed to its user-friendly website and mobile app, which allowed customers to compare and buy insurance policies online.

Today, Policybazaar is one of the leading online insurance marketplaces in India, with a vast network of partners and a customer base of over 100 million.

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Policybazaar has received a significant amount of funding from various investors over the years.

The company's first major funding round was in May 2011, when Intel Capital invested an undisclosed amount.

Policybazaar has raised a total of $904.9 million in 15 rounds from 33 investors.

Here are some of the notable funding rounds:

Policybazaar has also made investments in other companies, with its first investment being in DocPrime in September 2018, where it invested $50 million.

Policybazaar has been involved in some controversies over the years. In 2019, they filed a case against Acko General Insurance and Coverfox Insurance Broking Private Limited for trademark infringement.

The company has also faced issues with data security. In July 2022, they acknowledged a data breach that resulted in over 50 million user data records being leaked. Cyberx9 reported that the vulnerabilities were not fixed for 7 days despite it taking only an hour to fix them.

Policybazaar has also received fines for non-compliance with regulations. In May 2021, they were fined ₹24 lakh (US$28,000) by the Insurance Regulatory and Development Authority of India for flouting norms related to SMS advertising.

One of the biggest challenges Policybazaar faces is customer inertia. People are still used to buying insurance from agents and it takes effort to convince them to buy online.

Most Indians view insurance as just a tax-saving tool, failing to see the bigger picture that insurance means much more than just tax saving.

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Policybazaar has been involved in several controversies over the years.

In 2019, the company filed a case against Acko General Insurance and Coverfox Insurance Broking Private Limited for trademark infringement.

A ₹24 lakh fine was imposed on Policybazaar in May 2021 by the Insurance Regulatory and Development Authority of India (IRDAI) for violating norms related to SMS advertising.

Policybazaar acknowledged a data breach in July 2022, which exposed over 50 million user data records.

The vulnerabilities in Policybazaar's system were described as "intentional backdoor vulnerabilities" that took 7 days to fix despite it taking only an hour to do so.

Policybazaar sent a defamation notice to insurance review platform Beshak Solutions Private Limited in December 2023.

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The company identified these vulnerabilities and took steps to address them, sorting them out and conducting an audit to assess the damage.

Policybazaar reached out to the appropriate authorities regarding the attack, showing a proactive approach to dealing with the situation.

Fortunately, the attacks did not compromise significant customer data, according to reports.

Customer inertia is a significant challenge in the insurance industry, with many people still preferring to buy insurance from agents rather than online.

PolicyBazaar's Marketing Head, Sai Narayan, notes that convincing this category of people to buy insurance online requires effort.

Most Indians view insurance solely as a tax-saving tool, failing to see its broader benefits.

This limited understanding of insurance leads to a surge in sales during January-March, as people rush to make the most of tax benefits.

Customer inertia and a narrow view of insurance's purpose hinder the growth of the industry.

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Policybazaar's financials have seen a significant increase, jumping from Rs 1,425 crore in FY22 to Rs 2,558 crore in FY23. This substantial growth is a testament to the company's success.

The company's profit/loss has also seen a notable change, decreasing from a loss of Rs 833 crore in FY22 to a loss of Rs 488 crore in FY23.

Policybazaar boasts a impressive growth trajectory, with a 225% increase in revenues in the fiscal year 2017-2018. This rapid growth is a key factor in the company's success.

The company has also made significant strides in the online insurance space, occupying around 93.4% market share in April 2022. This dominance is a result of the company's focus on providing a seamless customer experience.

Here are some key growth highlights of Policybazaar:

Policybazaar's business model is built around a unique approach to insurance broking. They operate on a B2C (business-to-consumer) model, where customers can directly purchase insurance policies online.

The company has a strong presence in India, with over 10 million customers served annually. This is a testament to their efficient operations and customer-centric approach.

Policybazaar's platform is designed to simplify the insurance buying process, making it easy for customers to compare and purchase policies from leading insurance companies.

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Policybazaar offers a wide range of insurance products, making it a one-stop-shop for all your insurance needs.

The company processes nearly 25% of India's life insurance and over 7% of the country's retail health cover, showcasing its vast reach and influence in the insurance sector.

Policybazaar has tie-ups with over 40 insurance providers, giving users access to a diverse range of policies.

Policybazaar's business partners include companies that offer car insurance, health insurance, life insurance, corporate insurance, and travel insurance.

Here are some of the main Policybazaar products:

PolicyBazaar's platform is designed to be user-friendly, allowing visitors to easily compare insurance plans and buy the ones relevant to their needs.

The company offers more than 250 insurance plans from around 50 insurance brands on its platform.

Through PolicyBazaar's 'My Account' feature, customers can download a policy, raise a ticket, ask for clarification, and upgrade policies.

Customers can also use the self-inspection video feature for the revival of lapsed motor insurance.

PolicyBazaar launched its mobile app in 2015, available for both Android and iOS platforms.

The app allows customers to search, compare, and buy insurance, as well as take advantage of features like hospital locator, garage locator, and insurance premium calculator.

Customers can also use the app for instant renewal of insurance policies, claim assistance, and more.

PolicyBazaar operates on both B2C and B2B models, making it a unique business in the insurance industry.

The company has partnered with insurance brokers to gather information on policies, such as price, benefits, and insurance cover, directly from them.

PolicyBazaar doesn't charge customers a fee for this service, allowing them to compare policies and make informed decisions.

This model enables customers to research and compare different insurance policies within a category, giving them a wide range of options to choose from.

By partnering with insurance brokers, PolicyBazaar is able to provide customers with accurate and up-to-date information on policies.

PolicyBazaar makes money through a variety of channels, including generating leads for insurers, advertising, and policy sales. The company's revenue model has shifted over time, with a significant increase in e-commerce and policy sales.

In 2011, 85% of PolicyBazaar's revenue came from lead generation and advertising, while the remaining 15% came from policy sales. Now, the company generates 85% of its revenue from e-commerce and policy sales.

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The growth of PolicyBazaar's revenue can be seen in its impressive growth highlights. The company recorded a growth of 225% in its revenues in the fiscal year 2017-2018.

Here's a breakdown of PolicyBazaar's revenue streams:

This shift in revenue streams has contributed to PolicyBazaar's success and growth as the largest insurance aggregator in India.

PolicyBazaar has a wide range of business partners from various sectors, including car insurance, health insurance, and life insurance.

Some of the notable partners include Aegon Life, Aviva Life Insurance, Bajaj Allianz, Cigna, and HDFC Ergo.

PolicyBazaar also partners with corporate insurance and travel insurance companies, catering to diverse client needs.

In addition to these, the startup has partnerships with Edelweiss Tokio Life, HDFC Life, ICICI Prudential, Liberty General Insurance, and Cholamandalam General Insurance, among others.

A total of 19 insurance companies are listed as partners, including IDBI Federal Life Insurance and Reliance Life Insurance, which further expands the startup's reach.

PolicyBazaar's partnership with Bharti AXA Life Insurance, announced on September 23, 2023, aims to develop a unique ULIP plan called Wealth Maximizer, marking a significant milestone in the industry.

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In the world of business, acquisitions are a key part of growth and expansion. PolicyBazaar has recently made a notable acquisition.

PolicyBazaar acquired Visit Internet Services on January 15, 2022. This move is likely to strengthen their online presence and offerings.

The acquisition amount was a significant Rs 22.4 crore.

Tarun Mathur is a seasoned professional with a strong background in operations management. He has a Bachelor's degree in Information Technology (BIT) from IGNOU.

Tarun's experience in workforce management is evident in his role as a Team Leader at HeroITES. He also worked as a Manager in FE Global Technology.

After gaining valuable experience, Tarun co-founded PolicyBazaar in May 2008.

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Policybazaar is a leading online insurance marketplace in India. It was founded in 2008 by Yashish Dahiya and Avaneesh Nirantar.

The company is headquartered in New Delhi and has a presence in over 100 cities across India.

PolicyBazaar's name is aptly chosen as a marketplace for insurance policies. This straightforward approach sets the tone for the company's focus on facilitating comparisons and purchases.

The logo of PolicyBazaar cleverly incorporates the brand name with an interesting play on words. The blue circle represents the "com" in the company's website domain.

The tagline "Compare.Buy.Save" is prominently featured in the logo, emphasizing the company's mission.

PolicyBazaar's mission is to build a safety net for households in India. This goal is ambitious, but it's clear that the company is committed to making a positive impact.

The company's vision is to see a healthy and well-protected India. This vision is closely tied to its mission, and it's easy to see how the two goals are connected.

PolicyBazaar's mission and vision statements give us a glimpse into the company's values and priorities. They show that the company is focused on making a difference in people's lives.

PolicyBazaar has received numerous awards and recognitions for its innovative business model and customer-centric approach. This is a testament to the company's commitment to excellence.

The company has won the IAMAI Indian Digital Awards for the best financial website in 2013-2014. This is a prestigious award that recognizes the company's efforts in creating a user-friendly and informative online platform.

PolicyBazaar has also received the Frost and Sullivan Customer Value Leadership Award in 2014. This award acknowledges the company's focus on delivering exceptional customer value and satisfaction.

In 2015, the company won several awards, including the Award for Best Mobile App Consumer Finance by GSF Mobile Appies, the Exchange4media Golden Mikes Award, the DMAi Asia ECHO Awards, the CMO Asia Awards, the BAM Award, and the Iconic IDC Insight Awards.

Here are some of the notable awards received by PolicyBazaar:

PolicyBazaar has some fierce competitors in the market. Turtlemint is one such company that specializes in the comparison and purchase of various insurance products online.

Turtlemint offers a range of services including car, bike, health, and life insurance, as well as assistance with insurance claims and policy renewals. It was founded in 2015 and is based in Mumbai, India.

Coverfox is another insurtech platform that provides online insurance products in various sectors such as motor, health, and life insurance. It offers a comparison tool for customers to evaluate and purchase insurance policies from over 50 providers.

Coverfox prioritizes data security for its users and was founded in 2013, also based in Mumbai, India. InsuranceDekho provides quotes, supports claims, and assists with renewals for individuals seeking insurance solutions that meet their personal and family needs.

It was founded in 2017 and is based in Gurugram, India, operating as a subsidiary of CarDekho. Easypolicy is an online insurance policy aggregator that helps users compare and buy insurance policies from a variety of insurers.

Easypolicy provides a variety of insurance products, including health insurance, car insurance, travel insurance, and more. It was founded in 2011 and is based in Noida, India.

Policybazaar's IPO was a significant milestone in the company's history. It finally went live on November 1, 2021, after being approved by the Securities & Exchange Board of India (SEBI) in August 2021. The IPO was priced at Rs 940 to Rs 980 per equity share and was subscribed by 16.59X.

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Policybazaar raised ₹5,625 crore through its IPO, which is a significant amount of money. The company's shares were listed on the National Stock Exchange and Bombay Stock Exchange on November 15, 2021, and were valued at $7.27 billion as of November 16, 2021.

The company had initially planned to raise around ₹6,017.5 crores, including a fresh issue of shares worth ₹3,750 crores and an offer for sale of shares worth ₹2,267.5 crores by existing shareholders. However, the IPO was eventually priced at ₹940 to ₹980 per share.

Policybazaar is set to list on the bourses via a ₹4,000 crore initial public offering, which will see it dilute a 15% stake while seeking a valuation of almost $3.5 billion.

The company has a vast loyal customer base, so renewals generate revenues; the number is increasing steadily as more people are preferring to transact online for safety, ease of understanding products; saving time by availing instant neutral advice from the aggregator by comparing plans before buying suitable insurance.

Policybazaar expects to return to profitability in FY21 on the back of a demand surge for insurance products amid the covid-19 pandemic.

PolicyBazaar's IPO was a highly anticipated event. The company had initially filed its Draft Red Herring Prospectus with SEBI in August 2021, seeking to raise around Rs 6017.5 crores.

The IPO was finally approved by SEBI, and it went live on November 1, 2021. The company shares were listed on the BSE at a 17.35% premium to the issue price of Rs 980.

PolicyBazaar's IPO price was fixed at Rs 940 to Rs 980 per equity share. The company saw a 16.59X subscription, with the stocks closing at Rs 1203 on the NSE, a 22.74% higher than its IPO price.

The IPO valued the company at $7.27 billion, as of November 16, 2021. This was a significant milestone for PolicyBazaar, marking its entry into the public markets.

Here's a quick rundown of the IPO details:

PolicyBazaar's IPO was a significant success, with the company's stock price increasing by over 20% over the IPO price. This marked a new chapter in the company's growth and development.