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A Detailed Analysis Of Policybazaar India’s One Of The Most Successful Unicorn in 2024: Past, Present & Future

How It Started

Policybazaar, one of India’s leading online insurance marketplaces, was founded in June 2008 by Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar. The inception of it was driven by a clear mission: to bring transparency and efficiency to the insurance sector in India, which was often plagued by a lack of clarity and cumbersome processes. Yashish Dahiya, having previously worked with Bain & Co. and as the CEO of First Europa, a global online insurance broker, recognised the challenges consumers faced in understanding and purchasing insurance products. This experience laid the foundation for Policybazaar’s core proposition—providing a platform where users could compare and purchase insurance policies with ease and confidence.

The founders’ vision was to create a user-friendly online platform that offered a wide range of insurance products, including health, life, motor, and travel insurance. Policybazaar leveraged technology to aggregate and present information from various insurance providers, allowing users to compare policies based on their needs. The company also introduced features like premium calculators and live chat support to assist customers in making informed decisions.

List of Founders & Cofounders, Their Share-Holding, and Their Profiles

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  1. Yashish Dahiya:
    • Profile: Yashish Dahiya is the CEO and co-founder of Policybazaar. He holds an MBA from INSEAD and a Bachelor’s degree in Engineering from IIT Delhi. Before founding it, Yashish worked at Bain & Co, and First Europa, bringing in-depth industry knowledge and a vision for transforming the insurance landscape in India.
    • Share-Holding: As of the latest records, Yashish Dahiya holds approximately 12% of the shares in Policybazaar.
  2. Alok Bansal:
    • Profile: Alok Bansal is the co-founder and CFO of Policybazaar. He holds an MBA from the Indian Institute of Management (IIM) Kolkata and a Bachelor’s degree in Engineering. Alok’s experience spans financial management and strategic planning, which has been instrumental in it’s growth.
    • Share-Holding: Alok Bansal holds around 5% of the shares in Policybazaar.
  3. Avaneesh Nirjar:
    • Profile: Avaneesh Nirjar, one of the co-founders, has a background in operations and management. He holds an MBA from XLRI Jamshedpur and has held various leadership roles in companies like GE Capital. Although Avaneesh exited the company in its early stages, his contributions were significant during its formative years.
    • Share-Holding: As of his exit, Avaneesh Nirjar no longer holds shares in Policybazaar.

List of Funding Rounds

Policybazaar has raised substantial capital through multiple funding rounds to fuel its growth and expansion. Here is a detailed list of the funding rounds:

  1. Seed Round (2008): It raised an undisclosed amount from Info Edge (India) Ltd, the parent company of This initial investment helped Policybazaar establish its operations and develop its online platform.
  2. Series A (2013): The company raised $4 million in its Series A round from Info Edge (India) Ltd and Intel Capital. This funding was pivotal in expanding it’s product offerings and marketing efforts.
  3. Series B (2014): Policybazaar secured $10 million from investors including Info Edge (India) Ltd, Intel Capital, and Inventus Capital. The funds were utilized to enhance the technology platform and scale operations.
  4. Series C (2015): The company raised $40 million in a Series C round led by Premji Invest, along with participation from existing investors. This round aimed at further expanding Policybazaar’s reach and market penetration.
  5. Series D (2017): Policybazaar raised $77 million from investors including Wellington Management, IDG Ventures, and True North. This round was focused on technological advancements and launching new insurance products.
  6. Series E (2018): The company secured $200 million in a Series E round led by SoftBank Vision Fund, with participation from existing investors. This round was significant in positioning it as a leader in the insurance marketplace sector.
  7. Series F (2020): Policybazaar raised $150 million from Tencent Holdings, Tiger Global Management, and other existing investors. The funds were used for geographic expansion and entering new verticals.
  8. Pre-IPO Round (2021): The company raised $75 million in a pre-IPO round from Falcon Edge Capital and other investors to strengthen its balance sheet and prepare for the public offering.

Total List of Investors

It has attracted investments from a diverse group of venture capital firms, strategic investors, and financial institutions. The key investors include:

  1. Info Edge (India) Ltd
  2. Intel Capital
  3. Inventus Capital
  4. Premji Invest
  5. Wellington Management
  6. IDG Ventures
  7. True North
  8. SoftBank Vision Fund
  9. Tencent Holdings
  10. Tiger Global Management
  11. Falcon Edge Capital

Valuation as of June 2024

As of June 2024, it’s valuation stands at approximately $8 billion. This valuation is reflective of the company’s dominant position in the Indian insurance market, its robust growth trajectory, and the increasing demand for online insurance products. Policybazaar’s consistent performance, innovative product offerings, and strategic investments have contributed to this impressive valuation.

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List of Controversies and Scams

Like many high-profile startups, it has faced its share of controversies and challenges:

  1. Data Breach Incident (2021): In 2021, Policybazaar experienced a significant data breach that compromised the personal information of millions of customers. The incident raised serious concerns about the company’s data security practices. Policybazaar took immediate steps to address the breach, including enhancing its cybersecurity measures and conducting a thorough investigation.
  2. Mis-selling Allegations (2019): Policybazaar faced allegations of mis-selling insurance policies to customers. Critics claimed that the company’s sales tactics were aggressive and sometimes misleading. Policybazaar strengthened its customer support and compliance teams to ensure that all sales practices adhered to regulatory standards.
  3. Regulatory Scrutiny (2022): The company was scrutinised by the Insurance Regulatory and Development Authority of India (IRDAI) for alleged violations of insurance selling norms. It cooperated fully with the investigation and took corrective actions to align its operations with regulatory requirements.

List of Legal Actions

Over the years, Policybazaar has been involved in a few legal actions, primarily related to its business operations and regulatory compliance:

  1. Patent Infringement Lawsuit (2016): Policybazaar was sued by a competitor for allegedly infringing on a patent related to online insurance comparison technology. The case was settled out of court, with Policybazaar agreeing to pay a settlement fee and make certain modifications to its platform.
  2. Consumer Complaints (Ongoing): The company has faced numerous consumer complaints related to service quality, policy cancellations, and refunds. Policybazaar has established a dedicated grievance redressal team to address these issues and improve customer satisfaction.
  3. Tax Dispute (2020): It was involved in a tax dispute with the Indian tax authorities regarding the classification of certain revenues. The dispute was resolved after prolonged negotiations, with Policybazaar agreeing to pay a revised tax amount.

List of Regulation Enquiries

Policybazaar has been subject to various regulatory enquiries, primarily from the Insurance Regulatory and Development Authority of India (IRDAI):

  1. Compliance Audits (Regular): Policybazaar undergoes regular compliance audits by IRDAI to ensure that its operations are in line with regulatory requirements. These audits cover areas such as policy sales practices, data protection, and financial disclosures.
  2. Data Privacy Investigation (2021): Following the data breach incident, IRDAI launched an investigation into Policybazaar’s data privacy practices. The company cooperated fully and implemented several measures to enhance data security and protect customer information.
  3. Anti-Money Laundering (AML) Checks (Ongoing): As part of its regulatory obligations, Policybazaar is subject to regular AML checks to prevent any illicit activities through its platform. The company has a robust compliance framework in place to adhere to these regulations.

List of Public Outrage

Who are we really angry at and are we being guided to miss the mark?

Policybazaar, one of India’s leading online insurance and financial product marketplaces, has faced its share of public outrage over the years. While the company has played a significant role in revolutionizing the insurance sector by making it more accessible and transparent, it has also encountered criticism and backlash on various fronts.

  1. Customer Service Issues: One of the primary sources of public outrage has been related to customer service. Many customers have complained about the quality of service provided by Policybazaar, particularly in terms of resolving issues related to policy claims, renewals, and cancellations. Delays in customer support responses and unsatisfactory resolutions have often led to negative reviews and public dissatisfaction.
  2. Misleading Information: It has been accused of providing misleading information about insurance policies and financial products. Some customers have reported that the policies they purchased did not match the descriptions provided on the platform, leading to a gap between expectations and actual coverage. This has resulted in a loss of trust among consumers.
  3. Aggressive Telemarketing: Another major point of contention has been it’s aggressive telemarketing practices. Customers have often complained about receiving frequent and unsolicited calls from the company’s representatives, pushing them to purchase insurance policies or upgrade existing ones. This intrusive approach has not been well-received by many users.
  4. Data Privacy Concerns: With the increasing focus on data privacy and security, it has faced scrutiny over its handling of customer data. There have been concerns about the potential misuse of personal information collected by the platform, leading to calls for greater transparency and stricter data protection measures.
  5. Policy Claims and Settlements: The insurance sector, in general, is prone to disputes over policy claims and settlements. It, being an intermediary, has often found itself caught in the middle of such disputes. Customers who have faced difficulties in getting their claims processed or approved have sometimes directed their frustration towards it, even though the company is not the insurer.

Despite these issues, Policybazaar has taken steps to address public concerns and improve its services. The company has invested in enhancing its customer support infrastructure, improving transparency in policy descriptions, and adopting stricter data privacy measures. However, the journey towards regaining complete customer trust is ongoing.

Current Valuation, Profits, and Losses

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As of June 2024,it is valued at approximately $3.5 billion. The company’s valuation has seen a significant rise over the years, driven by its robust business model, extensive customer base, and strategic investments. Policybazaar’s ability to secure funding from prominent investors has also played a crucial role in boosting its valuation.

In terms of financial performance, it has demonstrated steady revenue growth. For the financial year 2023-2024, the company reported a revenue of $350 million, reflecting a year-on-year growth rate of around 25%. This growth has been fueled by an increase in the number of policies sold, higher premium collections, and the expansion of its product portfolio.

However, despite the impressive revenue figures, It has faced challenges in achieving profitability. The company has reported a net loss of $20 million for the financial year 2023-2024. The losses can be attributed to high operational costs, investments in technology and marketing, and the expenses associated with expanding its reach and services. It has been focusing on improving its unit economics and operational efficiency to move towards profitability in the coming years.

Present IPO Plans

Policybazaar went public in November 2021, listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India. The IPO was well-received by investors, raising approximately $700 million and marking a significant milestone in the company’s journey. The funds raised from the IPO were intended to be used for enhancing the technological infrastructure, expanding the product portfolio, and strengthening the company’s brand presence.

The IPO not only provided an exit route for early investors but also enabled Policybazaar to access public capital markets, enhancing its financial flexibility. Since going public, the company has focused on maintaining transparency in its operations and adhering to regulatory requirements, thereby strengthening investor confidence.

Policybazaar’s management continues to explore opportunities for growth and expansion. The company is considering secondary offerings and other strategic initiatives to raise additional capital, which will be used to further its mission of making insurance and financial products more accessible to the masses.

List of Sister Companies

Policybazaar has expanded its reach and capabilities through strategic acquisitions and the establishment of sister companies that complement its core business. Some of the notable sister companies include:

  1. Paisabazaar: Launched in 2014, Paisabazaar is an online marketplace for loans and credit cards. It offers a wide range of financial products, including personal loans, home loans, credit cards, and other financial instruments. Paisabazaar has grown to become one of India’s leading financial marketplaces, providing users with easy access to financial products from various banks and financial institutions.
  2. QuickFixCars: Acquired by Policybazaar in 2018, QuickFixCars is a platform that offers car repair and maintenance services. The acquisition allowed Policybazaar to extend its services into the automotive sector, providing a comprehensive range of services related to car insurance and maintenance.
  3. DocPrime: Launched in 2018, DocPrime is a healthcare platform that connects patients with doctors and diagnostic centres. The platform offers online consultations, appointment bookings, and a wide range of healthcare services. DocPrime complements Policybazaar’s health insurance offerings by providing users with easy access to healthcare services.
  4. Zphin: Acquired in 2020, Zphin is a technology company specializing in data analytics and artificial intelligence. The acquisition has enabled Policybazaar to enhance its technological capabilities, improve its data-driven decision-making processes, and offer more personalized products and services to its customers.

These sister companies contribute to Policybazaar’s overall ecosystem, enabling it to offer a comprehensive range of financial, insurance, and healthcare services to its customers.

List of Stakeholders

It’s stakeholders comprise a diverse group of individuals and entities that have played a significant role in the company’s growth and success:

  1. Founders: Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar are the visionary founders of Policybazaar. Their leadership and strategic direction have been instrumental in shaping the company’s growth trajectory.
  2. Employees: The employees of Policybazaar are crucial stakeholders who drive the company’s operations, innovation, and customer service. The company has a large workforce that includes sales representatives, customer support staff, technology experts, and corporate employees.
  3. Investors: Policybazaar has attracted significant investment from a variety of venture capital firms and strategic investors over the years. Key investors include:
    • SoftBank Vision Fund: A major investor in Policybazaar, SoftBank Vision Fund has provided substantial capital to support the company’s growth and expansion.
    • Info Edge (India) Limited: An early investor in Policybazaar, Info Edge has played a crucial role in the company’s development by providing financial support and strategic guidance.
    • Temasek Holdings: The investment arm of the Singapore government, Temasek Holdings has invested in Policybazaar, highlighting the company’s attractiveness to global institutional investors.
    • Tiger Global Management: A prominent venture capital firm, Tiger Global Management has participated in multiple funding rounds, contributing to Policybazaar’s financial strength.
  4. Partners: Policybazaar’s ecosystem includes insurance companies, banks, financial institutions, and healthcare providers. These partnerships are essential for offering a wide range of products and services to customers.
  5. Customers: As end-users of Policybazaar’s services, customers are vital stakeholders whose satisfaction and loyalty drive the company’s growth and market share.

List of Products & Services

Policybazaar offers a comprehensive range of products and services designed to meet the diverse financial and insurance needs of its customers:

  1. Health Insurance: Policybazaar provides a wide range of health insurance policies from various insurers. These policies cater to individuals, families, and senior citizens, offering coverage for hospitalization, medical expenses, critical illnesses, and more.
  2. Life Insurance: The platform offers an array of life insurance products, including term insurance, endowment plans, unit-linked insurance plans (ULIPs), and whole life insurance. These products provide financial security to policyholders and their families in the event of death, disability, or critical illness.
  3. Car Insurance: Policybazaar offers comprehensive and third-party car insurance policies. Customers can compare policies from different insurers, choose the best coverage, and renew their existing policies through the platform.
  4. Two-Wheeler Insurance: Similar to car insurance, Policybazaar provides two-wheeler insurance policies that cover damages, theft, and third-party liabilities. The platform enables users to compare and purchase policies from leading insurers.
  5. Travel Insurance: Policybazaar offers travel insurance policies that cover medical emergencies, trip cancellations, lost luggage, and other travel-related risks. These policies are available for domestic and international travel.
  6. Home Insurance: The platform provides home insurance policies that protect against damages to the structure and contents of a home due to natural disasters, fire, theft, and other risks.
  7. Personal Accident Insurance: Policybazaar offers personal accident insurance policies that provide financial compensation in case of accidental death, disability, or injury.
  8. Loan Products: Through its sister company Paisabazaar, Policybazaar offers a wide range of loan products, including personal loans, home loans, business loans, and education loans. Customers can compare interest rates, terms, and eligibility criteria from different lenders.

How Policybazaar Makes Money

Policybazaar, founded in 2008 by Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar, has emerged as India’s leading online insurance aggregator. The company offers a platform for consumers to compare and purchase a wide range of insurance policies, including health, life, motor, and travel insurance. Its revenue model is multifaceted, leveraging various streams to generate income and maintain profitability.

  1. Commissions from Insurance Providers: Policybazaar primarily makes money through commissions paid by insurance companies. When a consumer purchases an insurance policy via Policybazaar’s platform, the insurance provider pays a commission to Policybazaar. This commission is typically a percentage of the premium paid by the customer. Given the vast array of insurance products listed on the platform, these commissions form a significant portion of Policybazaar’s revenue.
  2. Lead Generation: Policybazaar generates revenue by selling leads to insurance companies. These leads consist of potential customers who have shown interest in a particular type of insurance. Insurance companies pay Policybazaar for access to these leads, enabling them to follow up and convert these potential customers into policyholders. The quality and volume of leads can significantly influence the fees charged by Policybazaar.
  3. Advertising and Listing Fees: Insurance companies pay Policybazaar for premium placement and advertising on its platform. By featuring prominently in search results or through banner advertisements, insurance providers can increase their visibility and attract more customers. Policybazaar charges a fee for these advertising services, adding another revenue stream.
  4. Value-Added Services: Policybazaar offers various value-added services to both customers and insurance providers. For customers, it provides additional features such as personalized policy recommendations, assistance with claim processing, and reminders for policy renewals. For insurance companies, it offers data analytics and market insights, helping them understand customer behaviour and improve their product offerings. These services can be monetized through subscription fees or one-time charges.
  5. Cross-Selling Financial Products: In addition to insurance policies, Policybazaar has ventured into the broader financial services sector by offering products such as loans, credit cards, and mutual funds. Policybazaar can earn commissions and fees from financial institutions by cross-selling these products. This diversification helps the company tap into new revenue streams and reduce reliance on insurance commissions alone.
  6. Partnerships and Collaborations: Policybazaar collaborates with various banks and non-banking financial companies (NBFCs) to offer a comprehensive suite of financial products. These partnerships often involve revenue-sharing agreements, where Policybazaar earns a share of the revenue generated from products sold through its platform. Such collaborations enhance the company’s market reach and provide additional revenue opportunities.
  7. Subscription Plans for Customers: Policybazaar offers subscription-based services to its customers, providing access to exclusive benefits such as discounts on premiums, priority customer support, and access to premium content. Subscription fees from these plans contribute to the company’s recurring revenue, enhancing its financial stability.
  8. Technology Licensing: Policybazaar leverages its technological expertise by licensing its platform to other companies, including international partners. By offering a white-label solution, Policybazaar enables other firms to use its technology and infrastructure to operate their insurance comparison platforms. Licensing fees from such arrangements add to the company’s revenue.
  9. Brokerage Services: Policybazaar has obtained a brokerage license, allowing it to act as an insurance broker. As a broker, Policybazaar can represent customers in their dealings with insurance companies, providing advisory services and negotiating better terms on their behalf. Brokerage services can generate additional income through fees and commissions.


In conclusion, Policybazaar’s success can be attributed to its robust revenue model, technological prowess, and customer-centric approach. By continuously innovating and diversifying its offerings, the company has solidified its position as a market leader in the insurance aggregation space. As it looks to the future, Policybazaar is well-positioned to capitalize on emerging opportunities in the financial services sector and continue its growth trajectory, delivering value to its customers, partners, and investors.




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