PB Fintech Invests ₹539 crore in its Healthcare Arm to Boost Managed Healthcare Growth

PB Fintech, the parent company of Policybazaar and Paisabazaar, has invested ₹539.4 crore in its healthcare subsidiary, PB Healthcare Services. This was a part of a larger ₹1,461.6 crore seed funding round. According to The Economic Times, this is the first tranche of the round, which will also include investments from external investors. PB Fintech’s stake in PB Healthcare Services has dropped from 100% to 32.14% following the investment.

The company aims to use the funds to strengthen its healthcare operations. PB Healthcare Services, founded in January 2025, plans to launch its first hospitals in the National Capital Region (NCR) of India and gradually expand into other metro cities.

Seed Round Marks a Strategic Shift

PB Healthcare Services was previously a wholly owned subsidiary of PB Fintech Limited. Now, it is raising ₹1,461 crore (about $171 million) in its first seed funding round. Out of this total, PB Fintech has already infused ₹539.4 crore. The remaining amount will be invested by external participants, according to filings with the National Stock Exchange (NSE).

PB Fintech’s shareholders approved this investment through a postal ballot. The funds were deployed by subscribing to 5.39 crore Compulsory Convertible Preference Shares (CCPS) priced at ₹100 per share. This move was planned as part of a larger resolution that allowed PB Fintech to invest up to ₹696 crore in PB Healthcare Services during the financial year 2025-26.

The fintech company explained the rationale behind the dilution of its ownership. “The dilution in shareholding is a strategic decision to bring in external investors and create an ESOP pool to attract and retain talent,” the company stated in its filing.

As part of this funding round, PB Healthcare Services has also established an Employee Stock Option Plan (ESOP) pool. The ESOP is meant to bring in top talent and maintain long-term employee engagement as the company enters a highly competitive healthcare space.

Focus on Hospital Expansion and Managed Healthcare

PB Healthcare Services has set an ambitious target to establish hospitals with a combined bed capacity of 1,000 within its first year. These facilities will focus on delivering managed healthcare services primarily to Policybazaar policyholders. PB Fintech will launch its first healthcare operations in the NCR in India and later extend its services to major urban cities.

PB Fintech has now entered the physical healthcare infrastructure segment, building on its primary operations in digital insurance and credit platforms. The company plans to leverage its established Policybazaar brand trust to provide seamless connections between insurance services and direct healthcare delivery.

The capital raised will support these expansion plans and strengthen the subsidiary’s financial base. PB Fintech’s entry into the healthcare sector corresponds to a wider industry momentum. This will help digital start-ups try to venture into integrated health platforms.

The financial performance of PB Fintech has also shown strong momentum. In the December quarter of FY25, the company reported a 48% increase in operating revenue, rising to ₹1,292 crore from ₹871 crore during the same period last year. Net profit also grew, reaching ₹72 crore compared to ₹37 crore a year earlier.

With this investment, PB Fintech is not just expanding its service portfolio but also taking a significant step toward becoming a player in India’s growing healthcare sector. The development of hospitals under PB Healthcare Services reflects a long-term vision to offer end-to-end health and wellness solutions.