NEW DELHI: Google plans to acquire a minority stake in SoftBank-backed online insurance platform PolicyBazaar.com. This will be Google’s second investment in India after buying a minority stake in Reliance Jio for $4.5 billion. Sources say that SoftBank, which holds a 15% stake in Policy Bazaar, may partially exit.
Another source familiar with the matter said, “Google is looking at the deal as it wants to increase its presence in the Indian digital market.” Adding that the valuation of the stake will depend on the last investment rounds.
When asked, SoftBank and Google did not answer our questions. PolicyBazaar declined to comment.
Alphabet-owned Google had announced last month that it plans to invest about $10 billion in India in the next 5-7 years. It is looking at various companies to invest in the world’s largest internet user base after China.
SoftBank’s investment in PolicyBazaar’s holding company Etechaces Marketing and Consulting valued the company at $1.5 billion. This was when its last round of $130 million was made in July.
Currently, PolicyBazaar’s counts Tiger Global, Tencent and SoftBank’s Vision Fund as its marquee investors. It is also planning to go public next year with a $500 million IPO which is in the works.