PB Fintech to Enter Healthcare Sector with New Wholly-Owned Subsidiary The new entity, which is expected to be named either 'PB Healthcare Private Limited' or 'PB Healthcare Services Private Limited,' will focus on providing healthcare services.

PB Fintech Limited, the parent company of Policybazaar, is set to expand its footprint into the healthcare sector with the incorporation of a wholly-owned subsidiary.

The company made the announcement in a regulatory filing on December 3, 2024, revealing that its Board of Directors had approved the proposal through a circular resolution.

The new entity, which is expected to be named either 'PB Healthcare Private Limited' or 'PB Healthcare Services Private Limited,' will focus on providing healthcare services. The subsidiary will have an authorised share capital of INR 5 lakh, and PB Fintech will retain 100% ownership.

The incorporation process is already underway in India, with the company working to secure the necessary regulatory approvals. PB Fintech clarified that this venture will be professionally managed, with no identifiable promoter group, and the decision is free from any related-party interests.

Yashish Dahiya, Chairman and Group CEO of PB Fintech, shared insights into the strategic vision behind the move during the company's latest earnings call.

"The insurance ecosystem suffers from a lack of trust between providers, insurers, and customers. This distrust inflates costs and complicates claims processing. By addressing these inefficiencies, PB Health could reduce friction, enhance claims satisfaction, and potentially spur faster growth in health insurance adoption," he noted.

Dahiya further outlined PB Fintech's long-term strategy, stating that the company's focus will be on prioritising the lifetime value of customers, a shift from the traditional revenue-per-bed model in the healthcare industry. "We believe the future of healthcare will be about the lifetime value of the customer, beginning with the insurance premium they pay," he said, underlining the synergies with Policybazaar's existing business model.

The company has committed up to USD 100 million in this healthcare venture, with a primary focus on building infrastructure and operational frameworks. However, Dahiya clarified that the objective of this initiative is not to generate immediate financial returns but to foster broader industry growth, which will, in turn, benefit Policybazaar by indirectly accelerating its market penetration.

PB Fintech's healthcare model will involve strategic partnerships with hospitals and insurance companies to standardise operating procedures and reduce claims discrepancies. Dahiya believes that the success of this initiative could lead to a projected 5% annual acceleration in the overall industry growth rate.

This strategic move comes after PB Fintech reported a strong financial performance, with Q2 FY25 operational revenue reaching INR 1,167 crore, a 43.81% year-on-year increase. The company also turned a profit of INR 51 crore, a notable recovery from the loss of INR 21.11 crore incurred during the same period last year.