PolicyBazaar Establishes Wholly Owned Subsidiary ‘PB Pay Private Limited’: Expansion into Payment Aggregation Services

PolicyBazaar, a prominent player in insurance and financial services, has unveiled plans to diversify its offerings by establishing a wholly owned subsidiary named ‘PB Pay Private Limited.’ This subsidiary, approved by the Board of Directors on March 20, 2024, aims to specialize in payment aggregation services, both domestically and internationally, subject to regulatory clearances.

Incorporation Approval: Board Meeting Decision

• The Board of Directors of PolicyBazaar sanctioned the incorporation of PB Pay Private Limited on March 20, 2024.
• The subsidiary’s proposed business model encompasses payment aggregation services, contingent upon regulatory approvals from authorities such as the Reserve Bank of India (RBI).

Business Scope and Capital Structure

• PB Pay Private Limited is slated to operate as a Non-Banking Financial Company (NBFC) with a focus on payment aggregation.
• The authorized share capital for the subsidiary is set at Rs 50,00,00,000, with a proposed paid-up capital of Rs 27,00,00,000.

Ownership and Transaction Details

• As a wholly owned subsidiary of PolicyBazaar, PB Pay Private Limited will be categorized as a related party.
• Despite PolicyBazaar’s absence of a discernible promoter, the transaction is expected to be conducted at arm’s length, considering its status as a professionally managed entity.