Google Can Acquire 10% In PolicyBazaar By Investing Rs 1200 Crore; What Is The Reason?
It has been reported that the tech giant Google is now looking forward towards buying a minority stake in the Indian insurance aggregator and global financial technology company Policybazaar.
This comes just a month after Alphabet and Google CEO Sundar Pichai announced to invest a total of $10 billion in India, to boost the country’s digital stand-ground.
Google to Acquire a Share of Policybazaar
Policybazaar, which is backed by the Japanese multinational conglomerate SoftBank, is in talks of being bought a minority stake by Google.
This is being reported to, as a part of Google’s $10 billion worth investment in India, in the coming 5-7 years, as pitched by Pichai.
As per a recent report, the US tech giant is eyeing to secure about 10% stake of Policybazaar, adding that we could also look at an investment worth $150 million, from Google into the insurance platform.
The same source also reported that Softbank, which currently backs up Policybazaar, with a holding stake of 15%, could also take a partial exit.
In short, a lot is being speculated about the alleged deal between the two firms, as neither Softbank nor Google, or Policybazaar responded to any such comment.
According to a source,
“Google is looking at the deal as it wants to increase its presence in the Indian digital market. The valuation and the stake will depend on the last investment rounds”.
Policybazaar to Launch an IPO Soon?
Despite either of the three firms declining to speak anything about such reports, we must bring it to your notice that Policybazaar is indeed planning to raise funds by launching an initial public offer (IPO), reportedly the next year.
Earlier this year, the company’s co-founder Yashish Dahiya said that they were looking forward to secure about $250 million in funding as well as raise funds at a price (quotation) above $3.5 billion, all this before launching their IPO in September 2021.
Last month, due to some new investments, SoftBank Vision Fund acquired a 15% stake in Policybazaar, spurting its valuation at about $1.5 billion.