PB Fintech IPO : Subscribe or NOT?

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

PB Fintech IPO– PB Fintech is India’s leading online platform for insurance and lending products. The company provides convenient access to insurance, credit, and other financial products

Business — Policybazaar is an online platform for consumers and insurer partners to buy and sell insurance products. 51 insurer partners offered over 340 term, health, motor, home, and travel insurance products on the policy bazaar platform, as of March 2021. Policybazaar offers its users with i) pre-purchase research, ii) purchase, including application, inspection, medical check-up, and payment; and iii) post-purchase policy management, including claims facilitation, renewals, cancellations, and refunds. The company has partnered with 54 large banks, NBFCs, and fintech lenders offering a wide choice of products to consumers across personal credit categories, including personal loans, business loans, credit cards, home loans, and loans against property.

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Offer purpose —

For enhancing visibility and awareness of company’s brands, including but not limited to “Policybazaar” and “Paisabazaar”
New opportunities to expand company’s consumer base including offline presence
Funding strategic investments and acquisitions
Expanding presence outside India and
General corporate purposes.

Risks —

Till date the company has been posting negative earnings and can continue to do so in near term

Strength

Providing a wide choice and transparency to customers to research and select insurance and personal credit products.
Proprietary Technology helps in superior data intelligence and customer service.
Collaborative partnership with various companies for insurance and lending products.
Strong network effects for Policybazaar and Paisabazaar platforms.
High renewal rates.
Capital efficient model with low operating costs.
Experienced Founders and management.

Future

PBFL has two verticals of online business i.e. Policybazaar and Paisabazaar. With its novel technology-based initiatives, it has created a niche place. With network effects, company has a good scope to scale its business

Valuations

Valuations are really high and no listed peers to compare with as well

Should we apply?

Risk takers can put in IPO and exit with listing gains if any. Wait for significant dip to enter for long term as long term prospects are bright

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