On Monday, Policybazaar's SoftBank-backed parent company, PB Fintech, rose more than 27 per cent in its stock market debut, with investors eager to back the under-penetrated insurance industry in India.
Shares of the company opened 17% higher than the IPO (initial public offering) price of ₹ 980 apiece, with about 28 million shares changing hands in morning trade.
PB Fintech's IPO was oversubscribed by sixteen times, and shares opened at ₹ 990, up 17.1% from the IPO price.
What caused this sudden increase in price?
There are several reasons why Policybazaar has succeeded where others have failed. The company is at the intersection of three ongoing trends, digital adoption, improved accessibility, and financial inclusion.
The company is also just the second insurtech firm to list on an India-based bourse, namely the National Stock Exchange (NSE) after Acko debuted with much fanfare on the Multi Commodity Exchange (MCE) amid investor enthusiasm for consumer-facing insurance technology companies.
India's digital economy is on the rise
Due to growing demand from investors, many insurtech firms are listing on the stock exchanges in order to capitalize on India's transition to a digitally advanced economy.
In fact, in October 2021, the Ministry of Electronics and Information Technology (MeitY) established a 1,000-day plan to make India a $1 trillion digital economy before 2030.
The pace of innovation in the Indian insurtech sector has been unrelenting. Policybazaar has demonstrated its ability to advance in every dimension of digital penetration as a pioneer in the industry.
Policybazaar is continuously increasing its scope and reach
Since its launch in July 2008, it has enabled more than 50 million customers to buy and service over 15 billion rupees of insurance premiums through digital channels, including its website, smartphone app, call centre, WhatsApp groups and chatbots on Facebook messenger.
The parent company, PB Fintech, will use the IPO funds to boost brand recognition, discover new market entry possibilities through brick-and-mortar presence, strategic investments, mergers and acquisitions, as well as expand its international foothold.