The Indian startup scene has produced some great unicorns and one of the recent ones include the insurance market giant Policybazaar. Co-founded by Yashish Dahiya, Alok Bansal and Avaneesh Nirjar in 2008, PolicyBazaar is an Indian insurance aggregator and a global financial technology startup.
It provides a digital platform to the users to compare financial services from major insurance companies. Policybazaar is headquartered in Gurugram, near New Delhi and is India’s largest insurance aggregator. After conquering the Indian online insurance market, it expanded its operations to the United Arab Emirates where the digitalisation of the market is taking off pretty rapidly.
According to an Economic Times report, Tencent bought 10% of Policybazaar in a recent deal for $150 million earlier this week. Tiger Global Management LLC had a stake in Policybazaar and it is said that Tencent has purchased half of that stake from the American hedge fund.
Tencent, a Chinese multinational conglomerate holding company founded in 1998 specialises in various internet-based services and products, entertainment, artificial intelligence and technology. The company has many ‘one of the world’s largest’ titles to its name. Tencent is the world’s largest gaming company thanks to PubG. It is one of the world’s most valuable technology companies alongside the likes of Baidu, Alibaba, Facebook, Amazon, Google, Microsoft and so on. It is also one of the world’s largest social media companies thanks to WeChat, which is the largest online chatting application and super app.
Moreover, it has spread its roots into investment and has become one of the world’s largest venture capital firms and investment corporations too. Its many services include social network, music, web portals, e-commerce, mobile games, internet services, payment systems, smartphones, and multiplayer online games, which are all among the world’s biggest and most successful in their respective categories.
Business Model of Policybazaar
The company has tie-ups with insurance companies that help it procure information such as price, benefit, insurance covers and so on directly from the insurers. It generates revenue by generating leads for the insurers, by advertising and policy sales. According to some sources, 85% of Policybazaar’s revenue came from lead generation and advertising and the rest 15% came from policy sales till 2011. Whereas, now, 85% comes from e-commerce or policy sales.
Increase in the sales of online policies shows that the India population is now more confident regarding the money they spend on the internet. They are confident about the online policy as it is extremely convenient and comes with great benefits as well.
Tencent was one of the slow major Chinese companies when it comes to investment in the Indian startup scene. However, in recent years, the Chinese tech giant has poured in big money in Indian tech startups.