Abu Dhabi investment firm ADQ is set to invest $ 70 million in the parent company of Policybazaar, the insurance aggregator which plans to go public this year, two people familiar with the development said.
The investment will enhance Etechaces Marketing and Consulting Pvt. Ltd, the 13-year-old company that also runs Paisabazaar, for around $ 2 billion, those asking for anonymity said.
If the deal goes through, ADQ will join prominent investors, including SoftBank, Tiger Global, Inventus, Temasek, Premji Invest, Info Edge and Wellington, to invest in Etechaces. The fintech company has so far raised $ 364 million.
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“We have had conversations and made significant progress. We can close it this week, ”said a person involved in the trading process, adding that the investor was removing a few bottlenecks ahead of the announcement.
Last July, Policybazaar Managing Director Yashish Dahiya said Bloomberg News that the company aimed to raise $ 500 million in an initial public offering slated for September this year.
The ADQ is headed by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and the brother of the Crown Prince of Abu Dhabi and de facto head of the UAE, Sheikh Mohammed bin Zayed Al Nahyan.
ADQ did not respond to TBENquestions of the proposed investment.
“We’re getting a lot of interest from big name investors like ADQ, but nothing to share on this one yet,” a spokesperson for Policybazaar said.
The investment, if it materializes, will mark ADQ’s expansion in India. The state-owned holding company, which invests in non-oil assets, is building a global investment platform and sees Policybazaar as an attractive option in India. The online insurance aggregator processes around 500,000 transactions per month. In January, the ADQ invested ₹555 crore for a 1.8% minority stake in Biocon Biologics, a unit of Biocon, at a post-cash valuation of $ 4.17 billion.
In May, ADQ launched Alpha Wave Incubation Fund, an AED 1.1 billion venture capital fund, which would invest in start-ups in India and Southeast Asia.
The investment in Policybazaar, however, would not be through this fund, one of the two people said.
The latest investment will come at a time when Flipkart, Zomato and a host of other Indian internet companies are eyeing public markets, even as the government has offered to ease restrictions on foreign listings.
Last year, the government announced a series of reforms in response to the pandemic, one of which included the direct listing of securities by Indian companies in “authorized foreign jurisdictions.”
Etechaces became a unicorn in mid-2018 when it raised more than $ 200 million in a funding round led by SoftBank Group Vision Fund.