SoftBank fully exits PolicyBazaar parent, bags a profit of 225%
What's the story
SoftBank has made a whopping $650 million (approximately Rs. 5,400 crore) in returns after fully exiting PB Fintech, the parent company of insurance marketplace PolicyBazaar.
Softbank had initially invested nearly $200 million in the Gurgaon-based firm and sold its remaining stake for about $109 million in mid-December.
This move is in line with SoftBank's strategy over the past year, where it has been gradually reducing its holdings through public market deals.
Details
SoftBank's recent exits and investments
In December, SoftBank also pulled out of Zomato after acquiring a stake in the food delivery platform when it purchased Blinkit (previously Grofers) in 2022 through an all-stock deal.
A January 2 report revealed that SoftBank sold stakes worth $1.8-1.9 billion during public offerings and post-listing sales in four Indian start-ups—Zomato, Paytm, PB Fintech, and Delhivery—that went public in 2021 and 2022.
SoftBank had invested a total of $2.3-2.4 billion in these four companies.
What Next?
Upcoming IPOs of SoftBank-backed firms
As of September 30, mutual funds like Franklin India and Mirae Asset held a 7.83% stake in PB Fintech, with Tencent and Steadview Capital being other major investors.
Founders Alok Bansal and Yashish Dahiya held 1.67% and 4.64% stake, respectively, at the end of the September quarter.
In 2024, SoftBank portfolio companies such as FirstCry, Ola Electric, and Swiggy are expected to go public.
FirstCry and Ola Electric have already filed draft IPO papers in December.