PB Fintech Expands into Healthcare with New Subsidiary Approval

Published: 05 Dec 2024

Author: Precedence Research

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The Health vertical is expected to add a new feather to PB Fintech Limited, which runs Policybazaar and Paisabazaar. Healthcare will soon have a fully owned subsidiary, pending approval from the Ministry of Corporate Affairs. Once approved, the subsidiary will work under either of the two proposed names — PB Healthcare Private Limited or PB Healthcare Services Private Limited, in line with the vision of PB Fintech of health and wellness integrated with its insurance services.

PB Fintech's directors approved the formation of a fully owned subsidiary, WOS, on 3 December 2024. Initial paid-up capital will be ₹5 lakhs into the subsidiary, which initiates a long-term investment plan. Operationally, this subsidiary shall constitute a related party of PB Fintech, signifying the company's efforts to expand its service portfolio and diversify its business activities beyond insurance aggregation and financial services.

Investment and Future Plans

PB Fintech, under the leadership of Group CEO and Chairman Yashish Dahiya, has approved a $100 million investment into health care. The plan entails acquiring a stake of 30% in a healthcare business, thereby closing the loop between hospitals and insurance. Dahiya believes that this integration will result in better and more user-friendly solutions for health care. Hence, the first step to make this dream a reality is the formation of a subsidiary for health care.

Financial Performance and Market Momentum

PB Fintech, the topmost financial services company, has reported a net profit of ₹51 crore for Q4 September 30, 2024, marking the fourth consecutive profitable quarter in a row. This profit is less than last year's ₹60 crore but is demonstrative of stability and progress. This kind of profit indicates the company's readiness to venture into healthcare after establishing itself in insurance and credit through Policybazaar and Paisabazaar.

Key Objectives of the Healthcare Subsidiary

• Redefining the hospital-insurance relationship for simplified downtime and efficient claim management in patient experience.
• Provisioning relief healthcare within some of the widely possible sections of the Indian community.
• Digitalisation for the integration between the patient, the provider, and the insurance company; suffices as this.

Potential Impact on the Healthcare Sector

With the introduction of digital platforms into the financial services world, PB Fintech will impact the health industry in India greatly. In such services, insurance claims will be put on a simple platform, thus making the experience of patients as well as those in the delivery of healthcare much better and more innovative.

The setting up of a subsidiary focused on healthcare speaks volumes about the strategic ambition of PB Fintech, which is moving beyond its traditional business of financial services and insurance aggregation into healthcare. Large investments are planned, and the key focus would be on gaps in healthcare and insurance, making the company a well-placed bet to play a transformative role in India's healthcare ecosystem. This marks yet another milestone for PB Fintech in that commitment to modernization and building an integrated, efficient, and accessible healthcare system for millions of Indians.

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