PolicyBazaar - Story, Founder, Business Model, Funding, Team, News

It’s always good to be insured against the contingencies and emergencies of life. The whole concept of insurance policy is to financially equip us to deal with loss. Insurance comes with many benefits like managing risk and managing cash flow uncertainty. Insurance is also a good investment tool.

However, the agents who are into selling insurance most of the times fail to provide insurance as per needs of the customer. They knowingly or unknowingly hide crucial policy related information from the customers. In many cases agents sell policies focusing on their personal benefit and commission rather than customer needs. Thanks to the opacity of the insurance industry, a big chunk of the saver’s funds goes into fattening the agent’s wallet. Due to these factors customers hesitate to buy insurance from agents.

To solve this problem, Yashish Dahiya founded PolicyBazaar in 2008. Today, PolicyBazaar is India's largest platform for analyzing, comparing and buying insurance, based on price, quality and other key features.

PolicyBazaar Highlights

Startup Name PolicyBazaar
Headquarter Gurugram
Founder Yashish Dahiya, Alok Bansal & Avaneesh Nirjar
Sector Fintech
Founded 2008
Parent Organization EtechAces Marketing and Consulting

About PolicyBazaar
PolicyBazaar - Industry Details
PolicyBazaar - Founders and Team
PolicyBazaar - The Idea and Starting Up
PolicyBazaar - Name, Tagline and Logo
What is PolicyBazaar
PolicyBazaar - Business Model and How it Works
PolicyBazaar - Revenue Model
PolicyBazaar - Funding and Investors
PolicyBazaar - Revenue/Annual Turnover & Valuation
PolicyBazaar - Challenges
PolicyBazaar - Competitors
PolicyBazaar - Business Partners
PolicyBazaar - Achievements
PolicyBazaar - Awards & Recognition
PolicyBazaar - Future Plans

About PolicyBazaar

PolicyBazaar is India’s leading aggregator and marketplace of insurance products.   Established in 2008, PolicyBazaar initially just compared the prices of insurance policies and provided insurance related information. Now PolicyBazaar not only assists customers in buying insurance policies, but also provides assistance for cancellation / renewal of policies and even claim settlement.

PolicyBazaar's parent company is EtechAces Marketing and Consulting.

PolicyBazaar - Industry Details

According to NASSCOM, Fintech market in India is likely to touch US$ 2.4 billion by 2020.

Again the insurance industry in India is likely to touch US$280 billion mark by 2020. However, a huge chunk of Indian population does not have insurance. Overall insurance penetration i.e premium as percentage of GDP was only 3.69% in 2017. As such, there is still a huge under-served market for insurance in India.

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PolicyBazaar - Founders and Team

Yashish Dahiya, Alok Bansal and Avaneesh  Nirjar founded PolicyBazaar in 2008.

PolicyBazaar founder Yashish Dahiya holds a Bachelor’s Degree in Engineering from IIT Delhi(1994), a Post Graduate Diploma in Management from IIM Ahmedabad(1996), and an MBA from INSEAD(2001). Just after that he joined Bain&Co as a consultant. Later he became the managing director UK at ebookers.com. In 2005, he founded First Europa, a Global Online Insurance Broker where he was responsible for leading the global expansion and managing the business of the company across 9 geographical locations. He is also a national-level swimmer and triathlete himself.

PolicyBazaar owner Yashish Dahiya  is  also an investor and founder of paisabazaar.com, which provides the market for fixed deposits and loans at your fingertips.

Yashish Dahiya served as the CEO of PolicyBazaar since its inception till February 2020. In February 2020, Sarbvir Singh was appointed as the CEO of PolicyBazaar. Sarbvir Singh served as the Managing Partner at WaterBridge Ventures prior to joining PolicyBazaar. An alumnus of IIT Delhi and IIM Ahmedabad, Sarbvir has a rich experience of working with companies like Emerson Electric, Citi Bank, HomeShop 18, Network 18J and P Morgan Private Equity Group. He also co-founded Hercules Capital, a company investing institutional and private client assets in the Indian equity market. Sarbvir exited Hercules Capital in 2006.

PolicyBazaar co-founder and Director Alok Bansal is an alumni of IIM Kolkata. Prior to PolicyBazaar, he worked as finance director at First Europa, senior Manager - Corp Strategy at Mahindra & Mahindra and business manager at iGate Global Solutions.

PolicyBazaar co-founder Avaneesh Nirjar is an Alumni of IIT Kharagpur. He also did MBA from Birla Institute of Technology. Prior to PolicyBazaar, he worked with companies like, Marico Industries, AT&T India, GE Capital International Services, Heroites, Cendant ISO and First Europa.

Currently, Sharat Dhall is the COO of PolicyBazaar. Prior to joining PolicyBazaar, Sharat, was COO at Yatra Online Pvt. Ltd. He has vast experience of working as Business Head at Hindustan Liver Limited, Vice President - e-commerce at Indiatimes.com, Managing Director (India) at Expedia and Managing Director (India) at TripAdvisor. He is also Advisory Board Member at CreditEnable, a global credit insights and technology solutions company

As per LinkedIn data, PolicyBazaar team consists of around 5000 employees. As confirmed by  PolicyBazaar owner Yashish Dahiya, in 2019, PolicyBazaar had plans to create 2500 new vacancies, leading to a team strength of 6000 employees. Mostly recruitment will be done for the customer support function of the company.

PolicyBazaar - The Idea and Starting Up

The idea for starting PolicyBazaar has its seed in an incident of insurance mis-selling that Yashish Dahiya, the owner of PolicyBazaar himself once faced.

I was going through some of the financials with my father and few things looked dubious. On deeper inspection, my father had been cheated of a few lakh rupees by insurance agents. The transactions looked clean on the face of it but the reality emerged when I looked in closely. This got me thinking about how people are getting duped hence came into being PolicyBazaar. We started PolicyBazaar with just 14 hardworking individuals.

As the platform is a market for Policy, so it is named PolicyBazaar.

PolicyBazaar's punch line is, “Insurance Compare Kiya” ?  The unique comparative system boosts credibility by empowering customers with comparative and accurate information.

PolicyBazaar has a simple logo.

PolicyBazaar Logo

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What is PolicyBazaar

PoicyBazaar is the marketplace for all insurance needs. It provides every thing from, life insurance, health insurance, motor insurance and other insurance like travel insurance and group insurance etc. The company offers more than 250 insurance plans and around 50 insurance brands on its platform. The platform is designed in a way that the visitors can easily compare the insurance plans and buy plans as per personal insurance needs.

The company is constantly adding new features and technology to make customer experience smoother. PolicyBazaar introduced 'my account' feature some times back. Through PolicyBazaar's 'My Account' feature, customers can easily download a policy, raise a ticket, ask for clarification and upgrade policies. The company introduced self inspection video feature for revival of lapsed motor insurance.

PolicyBazaar also adopted Amazon Polly and developed in-house  AI chatbot PBee to improve customer satisfaction.

In 2015, PolicyBazaar app was launched. The app is available for android and iOS platform. A customer can not only search, compare and buy insurance through the PolicyBazaar app, but there are also interesting features like hospital locator, garage locator, insurance premium calculator, instant renewal of insurance policies, claim assistance and more.

PolicyBazaar - Business Model and How it Works

PolicyBazaar.com is an aggregator website, which helps customers research and compare the features of different insurance policies within a category, hence enabling them to make an informed choice. The company has tied up with insurance brokers which help them procure information such as price, benefit, insurance cover etc directly from the insurers for the customer to compare. Based on the information provided, the customer then chooses the best option. It doesn't charge customers anything for this service.

PolicyBazaar - Revenue Model

PolicyBazaar makes money by generating leads for the insurers, advertising and policy sales. Till 2011, 85% of PolicyBazaar's revenue came from lead generation and advertising and the rest 15% came from policy sales. Now, 85% comes from e-commerce or policy sales.

PolicyBazaar - Funding & Investors

PolicyBazaar has raised a total funding of more than $346 Million in 7 rounds from 12 investors. Recently in May 2018, PolicyBazaar raised $ 200 million funding from Softbank and Info Edge.

Date Stage Funding Amount Investor
May 2011 Venture Round Undisclosed Intel Capital
March 2013 Series A $4.6 Million Intel Capital and Inventus Capital Partners
April 2013 Series B $5 Million Inventus Capital Partners, Info Edge, and Intel Capital.
May 2014 Series C $20 Million Tiger Global Management
April 2015 Series D $ 40 Million PremjiInvest, Tiger Global Management, Ribbit Capital, Steadview Capital, ABG Capital.
October 2017 Series E $77 Million Temasek, Tiger Global Management,Premji Invest,Info Edge(India) Ltd and other undisclosed investors
May 2018 Series F $200 Million Softbank and InfoEdge(India)

PolicyBazaar - Revenue/ Annual Turnover/ Valuation & Net Worth

In the fiscal year 2017-2018, PolicyBazaar's turnover increased by 225% to reach INR 159.4 Cr against 49.1 Cr in 2016-2017. As confirmed by founder of PolicyBazaar Yashish Dahiya, the company is aiming to earn revenue worth Rs 10,000 Cr by Fiscal Year 2020.

After the latest round of funding worth $ 200 million raised from Softbank and InfoEdge, PolicyBazaar's valuation is over $1 billion.

PolicyBazaar - Challenges

According to PolicyBazaar Marketing Head Sai Narayan, customer inertia is one of the biggest challenges faced by PolicyBazaar. Many people are still habituated to buy insurance from insurance agents. It takes effort to convince this category of people to buy insurance online.

According to Narayan, the other challenge is that in India most people view insurance just as a tax saving tool. They fail to see the larger picture that insurance means much more than tax saving. As such, most insurance sales happen during January- March.

PolicyBazaar - Competitors

BankBazaar, CoverFox , EasyPolicy, PolicyAdvisor, Acko and InsurancePandit are some major competitors of PolicyBazaar.

PolicyBazaar - Business Partners

PolicyBazaar has reputed companies from car insurance, health insurance, life insurance, corporate insurance and travel insurance sectors as its business partners.

Aegon life, Aviva Life Insurance, Bajaj Allianz, Cigna, Edelweiss Tokio Life, HDFC Ergo, DHFL Pramerica Life Insurance, HDFC Life, ICICI Prudential, Liberty General Insurance, Cholamandalam General Insurance, PNB Metlife, Max Life, Royal Sundaram General Insurance, SBI Life Insurance, TATA AIG, Future Generali, IFFCO-TOKIO General Insurance, Apollo Munich Health Insurance, Religare Health Insurance, Start Health and Allied Insurance, IDBI Federal Life Insurance, Reliance Life Insurance, Aditya Birla Capital, TATA AIA Life, Shriram Life/ General Insurance, Bharti AXA, National Insurance, New India Assurance, Universal Sompo General Insurance, Reliance General Insurance, Bajaj Allianz, Canara HSBC OBC Life Insurance, Max Bupa, Oriental insurance, Raheja QBE, SBI General Insurance and United India Insurance are some partners of PolicyBazaar.

PolicyBazaar - Achievements

Following are some major achievements of PolicyBazaar-

  • PolicyBazaar is known as the largest insurance aggregator of India.
  • PolicyBazaar.com receives 100 million visitors annually.
  • Sale of nearly 3,00,000 transactions a month.
  • Over 15000 policies sold in a moth.
  • In the fiscal year 2017-2018, the company scored a growth of 225% in its revenues.
  • After raising $ 200 Million from SoftBank and Info Edge in May 2018, PolicyBazaar's valuation reached over $1 billion. Thus, PolicyBazaar became the second Fintech Company in India to enter the unicorn club after Paytm.
  • PolicyBazaar occupies 50%market share in online insurance space.
  • It claims to hold 25% of India's life insurance cover and around 7% of India's retail health insurance business.
  • In August 2018, PolicyBazaar  launched DocPrime, an online medical service provider platform. DocPrime helps users in getting real time consultation from doctors online through chat and call. The platform has become quite popular and just within six months of operations DocPrime website received 1 million unique visitors.

PolicyBazaar - Awards & Recognition

PolicyBazaar has received many awards and recognition for its business model, customer centricity and marketing efforts. It has won the following awards-

  • IAMAI Indian Digital Awards for best financial website 2013-2014
  • Frost and Sullivan Customer Value Leadership Award - 2014
  • Award for Best Mobile App Consumer Finance in 2015  by GSF Mobile Appies
  • Exchange4media Golden Mikes Award 2015
  • DMAi Asia ECHO Awards 2015
  • CMO Asia Awards 2015
  • BAM Award 2015
  • Iconic IDC Insight Awards 2015

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PolicyBazaar - Future Plans

Major future plans of PolicyBazaar are-

  • Underwriting premium worth Rs 10,000 crore by 2020.
  • Expanding its unique customer base to 1 crore by 2020.
  • Increasing revenue to Rs 1500 crore by 2020.
  • Innovating new products and technology for better customer satisfaction.
  • Expanding outside India
  • PolicyBazaar is also expected to launch its IPO soon.
Website - PolicyBazaar

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About Shubham Kumar

Founder @StartupTalky. IIT KGP grad. Learner. Dedicated to the service of the startup Ecosystem. Love meeting people. Let's connect - shubham@startuptalky.com.
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