InvestorQ : With Google taking a stake in Policybazaar, do you see an IPO from them soon?
manisha Kolvenkar made post

With Google taking a stake in Policybazaar, do you see an IPO from them soon?

Answer
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Mahima Roy answered.
2 months ago


Google, which had committed to invest $10 billion in India, started off with a bang putting $4.5 billion in Jio Platforms. Now, Google is planning to acquire about 10% in Policybazaar for a consideration of about $150 million, giving the ecommerce franchise a valuation of $1.50 billion. Policybazaar offers an agnostic platform to choose insurance policies.

Google is seriously looking to deploy its cash pile to increase its presence in the Indian digital market and this could be their second critical acquisition in India. At the time of the Jio deal, Sundar Pichai had affirmed that Google was looking at 4-5 more deals in the Indian technology start-up space.

In the meanwhile, there have also been reports that the Google stake sale could form the basis for Policybazaar to plan its IPO, possibly next year. Policybazaar may be looking to achieve a valuation of over $3 billion before its stake sale in the IPO. The last investment by Softbank had valued Policybazaar at $1.50 billion and even the Google deal is expected around that level only.

However, it is still not clear about the modus operandi that the company will adopt for its IPO. It is expected that Policybazaar may become the first digital company from India to go public through an American capital market listing, although this is yet to be confirmed.