PB Fintech (Policybazaar) IPO: Information analysis

Incorporated in 2008, this professionally managed company has built India's largest online platforms for insurance and lending products. PB Fintech owns two brands - Policybazaar (68.5 per cent of FY21 revenues) and Paisabazaar (31.5 per cent of revenues). Policybazaar, the company's flagship brand, was launched in 2008 in a bid to increase awareness of insurance and provide transparent and convenient access to buying insurance policies online. As per an F&S report, it is India's largest digital-insurance platform, accounting for 65.3 per cent of all digital-insurance sales in India by volume in FY20. Paisabazaar, on the other hand, was launched in 2014 to provide easy access to various types of credits to its users. As per an F&S report, it is India's largest marketplace for digital-consumer credit, with a market share of 53.7 per cent based on disbursals in FY21. Paisabazaar is also widely used to access credit scores and as on June 30, 2021, a total of 22.5 million customers accessed their credit scores through this platform. The company generates revenues through commissions by selling insurance and additional services to insurer partners, as well as commissions earned from its lending partners through Paisabazaar. Besides, it provides online marketing, consulting and technology services to its insurer and lending partners. Earlier only registered as a web aggregator, Policybazaar has recently received the license to work as a direct insurance broker, which will relax certain regulations related to the company's commissions and offline-sales ability. Strengths The company has a very asset-light model, as it allows its customers to buy insurance policies and get access to credit facilities through its platform. The company itself does not underwrite any insurance or provide any kind of credit. So, it does not face any kind of credit risk. Leveraging its brands, the company has created transparent, user-friendly platforms, thereby enabling its customers to buy insurance and credit facilities with ease. The company has a long list of insurance and lending partners. As on September 30, 2021, a total of 48 insurance providers sold their products on Policybazaar, constituting 84.5 per cent of all licensed insurers in India. Similarly, Paisabazaar h