As part of Google’s commitment to invest $10 Billion in India over the next five to seven years, its looking to invest $150 Million in Online-Insurance platform Policy Bazaar for a 10% Stake.
With this investment Softbank Corp which holds around 15 % in PolicyBazaar can take a partial exit from the Online-Insurance major.
Policy Bazaar is looking for an IPO next year, before that they want to raise at least $250 Million at a valuation of $3.5 Billion.
Google CEO Sundar Pichai Announced the India investment plan last month. “Looking forward to working with Indian businesses of all sizes” – He said. The first investment from that fund of $4.5 Billion in Jio was announced the very next day.
No official word about the investment has been out from both the parties, but still, looking at the circumstances this looks like a solid news. Even for Softbank this sounds like a good deal, as it has a history of making profitable exits within a very short time of making investments.
The last investment made by Softbank was in Etechaces Marketing and Consulting, the parent company of Policy Bazaar was about $130 million buying a 15% stake which valued the company at $1.5 Billion.
Apart from Softbank, Policy Bazaar also includes Tencent and Tiger Global as their major investors.