Chinese tech investor Tencent has recently sold 2.1% of its stake in PB Fintech, the parent company of Policybazaar and Paisabazaar, for INR 562 Cr ($68 Mn). The bulk deal data on the BSE revealed that Tencent sold 94.16 Lakh shares of PB Fintech at INR 596.66 per share.
Following this transaction, Tencent’s stake in the fintech startup has been reduced from 8.4% to 6.3%. Societe Generale, according to the data, acquired some of the shares by purchasing 22.64 Lakh shares of PB Fintech for a total of INR 135.01 Cr, at a rate of INR 596.3 per share.
This move comes at a time when several investors have been divesting their stakes in listed startups. It was previously reported that SoftBank was looking to sell 5% of its stake in PB Fintech, and last year, venture capital firm Tiger Global divested a 2.98% stake in the company for INR 522 Cr.
While previous stake sales were anticipated due to the expiration of PB Fintech’s IPO lock-in period, this recent development is noteworthy considering the fintech startup’s recent positive financial results. In the fourth quarter of the fiscal year 2022-23, PB Fintech achieved adjusted EBITDA profitability and reduced its net loss by nearly 90% YoY to INR 9 Cr. Additionally, operating revenue experienced a significant jump of 61% YoY to INR 869.1 Cr during the same period.
PB Fintech, founded in 2008 by Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar, operates the insurance aggregator platform Paisabazaar, which allows users to choose from various insurance providers. It also offers Paisabazaar, a platform for accessing credit scores and financial products.
It is worth noting that Tencent’s remaining 6.2% stake in Policybazaar could still hold a value exceeding $200 Mn based on prevailing stock prices. Tencent initially acquired a stake in the insurtech giant for $150 Mn in 2019 through a secondary transaction with Tiger Global.
Shares of PB Fintech closed 2.85% lower at INR 604.65 on the BSE at the end of Friday’s trading session.
