PB Fintech invests ₹539 crore in PB Healthcare Services

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PB Fintech, the powerhouse behind Policybazaar and Paisabazaar, has taken a decisive leap into the healthcare sector by investing Rs 539.4 crore in its newly incorporated subsidiary, PB Healthcare Services Private Limited. This significant move marks the beginning of a larger Rs 1,461.6 crore seed funding round designed to accelerate the company’s entry into the healthcare space, with participation expected from both internal and external investors.

This first tranche, executed through the purchase of 5.39 crore Compulsory Convertible Preference Shares at Rs 100 per share, received prior shareholder approval via a postal ballot. While PB Fintech’s current holding stands at 100%, the stake will drop to 32.14% on a fully diluted basis post-funding completion. This strategic dilution enables the formation of an Employee Stock Option Plan (ESOP) to attract top healthcare talent and incentivize long-term growth.

PB Healthcare Services was incorporated in January 2025 and will focus on establishing hospitals with a capacity of up to 1,000 beds in its first year, offering managed healthcare services. The initiative aims to cater primarily to Policybazaar’s insurance clientele and India’s broader underserved medical infrastructure market. Gurugram-headquartered PB Healthcare has an authorised capital of Rs 2,500 crore.

This diversification comes on the back of strong financial performance by PB Fintech, which reported a 48% year-on-year rise in revenue to Rs 1,292 crore and a net profit of Rs 72 crore in Q3 FY25. With the growing convergence of fintech and healthtech, PB Fintech sees this transition as a natural evolution aligned with its mission to make financial and healthcare services more accessible across India.

By taking this bold step, PB Fintech is not only expanding its service portfolio but also redefining how digital-first platforms can bridge gaps in essential services, including health.

1. Introduction to PB Fintech healthcare

PB Fintech healthcare is the latest venture by PB Fintech, a company that has disrupted digital financial services through its flagship platforms, Policybazaar and Paisabazaar. As part of its mission to simplify complex service sectors for Indian consumers, PB Fintech healthcare marks the conglomerate’s foray into India’s critical and underserved health sector.

1.1 Company and Founders’ Background

PB Fintech was founded by Yashish Dahiya, Alok Bansal, and Naveen Kukreja. The company is known for revolutionizing insurance aggregation and credit comparison in India. Its digital-first model empowered millions to access transparent, cost-effective financial products. Yashish Dahiya, the CEO, continues to spearhead innovation across verticals, now extending into healthcare.

1.2 Revenue and Working Model

PB Fintech operates on a commission-based and lead generation revenue model. Policybazaar earns through commissions from insurers on policies sold, while Paisabazaar monetizes loans, credit cards, and financial services by generating leads for banks and NBFCs. The company also earns through advertising and premium listing services.

With PB Fintech healthcare, the group aims to create a complementary ecosystem. This includes offering end-to-end managed healthcare for its massive insurance customer base.

1.3 Transitioning to Healthcare: A Natural Fit

Given Policybazaar’s deep engagement with healthcare insurance, entering the hospital management and delivery domain offers natural vertical integration. The new subsidiary aims to build hospitals and offer managed care directly, ensuring better control over healthcare outcomes for its insured customers.

2. PB Fintech’s Rs 539 Cr Investment in PB Healthcare Services

PB Fintech recently invested Rs 539.4 crore in PB Healthcare Services Private Limited as part of a larger Rs 1,461.6 crore seed funding round.

2.1 Structure of the Investment

PB Fintech subscribed to 5.39 crore Compulsory Convertible Preference Shares (CCPS) at Rs 100 each. Shareholders had earlier approved this decision through a postal ballot.

2.2 Ownership Dilution and ESOP Pool

Initially, PB Fintech owned 100% of PB Healthcare. Following this investment round, its shareholding will dilute to 32.14% on a fully diluted basis. The dilution was strategic—it aimed to bring in external capital and establish an Employee Stock Option Pool to acquire and retain talent.

2.3 Strategic Intent Behind Investment

PB Fintech has made it clear that this funding is meant to build a strong financial base for PB Healthcare Services. It will also accelerate the company’s goal to build hospital infrastructure, primarily beginning with the National Capital Region (NCR) and expanding to other metros.

3. Vision of PB Healthcare Services

PB Healthcare was incorporated in January 2025 with a clear vision: to create accessible and high-quality medical infrastructure.

3.1 Services and Roadmap

In its first year, PB Healthcare aims to establish hospitals with a cumulative capacity of 1,000 beds. The hospitals will provide managed healthcare services, likely tailored to Policybazaar’s vast policyholder base.

3.2 Operational and Financial Plans

The funds raised will be used for operational expenses, brand building, office expansions, and strategic hires. The startup also plans to leverage fintech expertise to digitally enable hospital administration and patient experience.

3.3 Broader Industry Impact

This move marks one of the most prominent fintech-to-healthtech transitions in India. Moreover, as more consumers embrace digital-first services, PB Healthcare’s success could set a strong precedent for similar ventures.

4. Financial Performance of PB Fintech

PB Fintech has shown remarkable financial growth in FY25.

4.1 Recent Quarter Results

In the December quarter, PB Fintech reported revenue of Rs 1,292 crore—a 48% increase year-on-year. Net profit rose to Rs 72 crore from Rs 37 crore the previous year.

4.2 Reinvestment Strategy

The healthcare investment is a clear signal that PB Fintech is reinvesting its profits into verticals that align with long-term scalability and national needs. The healthcare push fits this blueprint perfectly.

5. Learning for Startups and Entrepreneurs

Entrepreneurs can learn several key lessons from PB Fintech healthcare:

5.1 Diversify at the Right Time

When a core business is stable, it becomes easier to branch into adjacent industries that share customer overlap. This makes diversification more strategic than speculative.

5.2 Align with Market Gaps

India’s healthcare infrastructure remains highly underserved. Addressing this gap with strong capital and execution provides not only growth potential but also public good.

5.3 Attract Talent Proactively

Creating ESOPs before scaling is a masterstroke. It signals long-term vision and attracts top-tier talent necessary for success in regulated, service-heavy sectors.

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