Insurance aggregator Policybazaar plans to raise $150 million or Rs 1,100 crore in the third quarter of the current fiscal. This fundraising would be utilised as buffer capital. Group CEO and co-founder Yashish Dahiya said that while the company does not require capital for business expansion, it might raise funds as a buffer for unforeseen events.
"We might raise some capital as a buffer. In the future you never know what will happen. This year COVID happened. What if something else happens in the future. We may raise about USD 150 million, but that is more for safety than for any plan. It may happen in the Q3," said Dahiya.
Moreover, the company expects to return to profitability this fiscal on the back of increasing demand for insurance products amid the pandemic. Dahiya said that the growth over the previous year is between 70-100 per cent, depending on the insurance product. "This year we should be profitable. We were profitable in FY18, while FY19 and FY20 we were not quite profitable. So this will help us to become profitable from this year onwards," he added.
He further said the company will look to consolidate its operations, invest in customer service and work towards capital efficiency as it looks to swing back into profitability this fiscal.
Despite booking a loss, the company's revenue jumped three-fold, while it doubled both market share and valuation at the end of FY20, he added.
During 2020-21, Dahiya said the company should log revenue of Rs 1,100 crore and post a marginal profit.
On insurance premium side, he said the current fiscal will close with Rs 6,000 crore as against Rs 4,000 crore in FY20.
As far as the other business Paisabaazar is concerned, he said there is some stress as demand for loans has come down significantly due to the COVID-19 crisis.
(With PTI inputs)