Japanese technology investor SoftBank has fully exited PB Fintech, the parent of insurance marketplace PolicyBazaar, according to people aware of the matter. SoftBank had invested close to $200 million in PB Fintech and sold its remaining stake in a mid-December transaction for about Rs 914 crore (or $109 million).
In total, SoftBank has made around $650 million in returns on its total investment in the Gurgaon-based insurance aggregator. In December, SoftBank also made an exit from Zomato. It picked up a stake in the company when the food delivery platform acquired Blinkit (formerly Grofers) in 2022 in an all-stock deal.
This is in line with Masayoshi son-led SoftBank’s strategy over the last 12 months or so where it has been steadily diluting its holding through public market deals.
ET reported on January 2 saying Softbank sold stakes worth $1.8-1.9 billion during the public offerings and through post-listing sales in four Indian startups — Paytm, Zomato, PB Fintech and Delhivery — that went public in 2021 and 2022. It had invested a total of $2.3-2.4 billion in these four new-age companies.
According to PB Fintech’s shareholding structure as of September 30, 2023, SoftBank through Svf Python II (Cayman) Limited, held 4.39% stake in the company.
Mutual funds including Franklin India and Mirae Asset continued to hold 7.83% stake in PB Fintech with Tencent and Steadview Capital being other major investors in the insurance marketplace.
Founders Alok Bansal and Yashish Dahiya held 1.67% and 4.64% stake in PB Fintech respectively, at the end of September quarter.
In 2024, SoftBank portfolio firms such as FirstCry, Ola Electric and Swiggy are expected to hit the public markets. FirstCry and Ola Electric have already filed draft IPO papers in December.
SoftBank–among the most influential technology investors– has funded almost a fifth of India’s over 100 unicorns or startups with valuations exceeding $1 billion. It has so far invested $15 billion in the country.
Of this, $11 billion had been invested by SoftBank Vision Fund. The group invested the remaining $4 billion in sectors such as renewable energy and infrastructure.
