Temasek, Info Edge co-invest $27.6m in PolicyBazaar parent

An employee walks past a sign for Temasek Holdings Pte at the company's offices in Singapore, on Tuesday, Aug. 25, 2009. Temasek Holdings Pte, Singapore's state-owned investment fund, said it will focus on being an active investor as it increases holdings in overseas companies. Photographer: Munshi Ahmed/Bloomberg

Singapore state investment firm Temasek and Info Edge (India) Ltd have co-invested $27.6 million (Rs 190.5 crore) in the parent entity of online insurance selling platform PolicyBazaar, possibly as part of the $200-million funding round the India startup raised last month.

In a BSE filing on Thursday, Info Edge, the parent of jobs portal Naukri.com, said that it along with MacRitchie Investments, a subsidiary of Temasek, will invest Rs.95.3 crore each in MakeSense for a 50.01 per cent and 49.99 per cent stake respectively, which in turn will invest the aggregate of about Rs.190.5 crore in Etechaces for a 3.50 per cent stake held by Pl Opportunities Fund I (PIOF) on fully diluted basis.

MakeSense is the subsidiary of Etechaces Marketing & Consulting, the parent entity of PolicyBazaar and lending marketplace PaisaBazaar.com.

Consequent to the aforesaid transaction, Info Edge will own 50.01 per cent of MakeSense and MakeSense will hold about 19.92 per cent (including existing stake of 16.42 per cent) of Etechaces on fully converted and diluted basis.

The purchase would help the company to consolidate its presence into the business of Insurance & financial products aggregator within the Internet services industry, the filing added.

Last month, PolicyBazaar had raised $200 million (Rs 1,360 crore) in a Series F funding round led by Japanese internet conglomerate SoftBank, with participation from Info Edge. As per media reports, existing investors Temasek, Premji Invest and Tiger Global Management had also invested in the round. In a separate filing, Info Edge had stated that it and SoftBank invested $45 million each into the venture for a total stake of 8.93 per cent stake.

Etechaces Marketing and Consulting Pvt. Ltd. started operations in 2008 through Policybazaar.com. The company helps users to compare and purchase financial products online, such as life insurance, general insurance, health insurance, etc. It counts Temasek, Tiger Global Management, True North, Premji Invest among existing investors.

Gurugram-based PolicyBazaar clocked Rs 358.27 crore in revenue for the financial year ending March 2018, up from Rs 212.87 crore in 2016-17 and Rs 109.54 crore in 2015-16. It competes with Sequoia Capital-backed BankBazaar, new entrant Coverfox, which recently raised $22 million, besides Fairfax Financial Holdings-backed Digit Insurance, and start-up Acko, which raised $12 million from Amazon in May this year.

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