Policybazaar.com, an insurance aggregator and agnostic advisor, plans to raise $150 million or Rs.1100 crore as buffer capital for unforeseen events. This is more in the light of the aftermath of COVID-19. The COVID pandemic has led to a surge in demand for insurance product and Policybazaar looks to return to profitability this fiscal year.

Incidentally, Policybazaar.com was profitable in FY18 but in FY19 and FY20 the aggregator was not profitable. This fund buffer will ensure that in the post COVID scenario, they can capitalize on opportunities. The company also plans to use the funds to invest in customer service and work towards capital efficiency towards making operations profitable.

Even in the tough years, Policybazaar.com has seen its revenues jump 3-fold, even as it doubled both market share and valuation by the end of FY20. For F21, the company hopes to log revenues of Rs.1100 crore and also could post a marginal profit. However, its lending business has come under stress due to tepid demand and also due to past stress.