PolicyBazaar Indian Startup Suscess story
Insurance cover is what everyone aspires to. So that their loved ones are provided for after their death. But the insurance policies they are sold by the agent often leaves them smarting. Most of them are lemon, thanks to the opacity of an industry where a big chunk of the saver’s funds goes into fattening the agent’s wallet. But that was the origin of Yashish Dahiya’s entrepreneurial spirit to set the industry in order with his policy bazaar.
Policy bazaar is India’s largest online financial services platform. The company began operations in 2008 in gurugram as a key force in establishing an informative online life insurance and general insurance aggregator. It helps consumers analyse, choose and buy financial products based on price, quality and other key features.
Over the next 8 years the company has marked a staggering growth in terms of revenue and customer acquisition to become the largest online aggregator in India. Policybazaar.com boasts of over 30 million unique visitors each year who compare the best suited financial products for them and the sale of over 15,000 policies on a month
Yashish Dahiya is an alumnus from 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 tri-athlete himself. He is an investor and founder of paisabazaar.com, which provides the market for fixed deposits and loans at your fingertips
Our punch line, “Insurance Compare Kiya” ? says it all. Our unique comparative system boosts our credibility. We empower customers with comparative and accurate”
PolicyBazaar - The idea
The idea for Policybazaar has its seed in an incident Yashish noticed. “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,” says Yashish and hence came into being Policybazaar.
PolicyBazaar - Business Model
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. We have tied up with insurance brokers which help us procure information such as price, benefit, insurance cover etc directly from the insurers for the customer to compare. Basis the information provided by us, the customer then chooses the best option. We do not charge our customers anything for this service. Our revenue comes from fixed marketing and advertisement fee from the insurance company.
PolicyBazaar - Revenue model
Our revenue comes from lead generation for the insurers, advertising and policy sales. However, there is a very interesting trend that we noticed. Till 2011, 85% of our revenue came from lead generation and advertising and the rest 15% came from policy sales. Now, 85% comes from e-commerce or policy sales.
The company has raise total funding of $69.6 M in 5 rounds from 9 investors. Policybazaar has been fueled up heavily by Premji Invest, the personal investment vehicle of Wipro chairmam, Also, it has recently raised 120 crore in equity funding from private equity firms.
Other stakeholders include Tiger global Management, naukri.com operator Info Edge, Intel Capital, Inventus Capital Partners and Ribbit Capital. The company is likely valued at Rs 2,000 crore.
PolicyBazaar - Competitors
Insurance companies with their own products are not our competition in any way.
PolicyBazaar - Marketing campaigns
Till about a year and half ago, 95% of our marketing spends were on the online/digital platform. However, we currently spend about 50% of our marketing budget online and the other 50% has been moved to our branding/offline marketing. We expect to spend more and more on our offline campaigns as we believe that when it comes to online presence in insurance, we are already one of the top performers. Even with reduced expenses on online, we haven’t seen a dip in our customer visits, which to me implies are brand is growing since we are getting more and more direct customers.