Policybazaar owner PB Fintech said on Thursday its new healthcare venture has raised $218 million in a seed round, marking its entry into India's fast-growing healthcare industry.
The venture, PB Health, will use the funds to set up four to five hospitals in and around New Delhi by 2027, with a long-term plan to build a 25–30 hospital network across 10 Indian cities, PB Fintech chairman Yashish Dahiya told Reuters in an interview.
The fund raise includes $50 million from Silicon Valley-based General Catalyst, which last year led a $340 million round in Mumbai-based quick commerce startup Zepto and is a backer in Indian startups Cred and Spinny.
Policybazaar is India's largest insurance aggregator, selling health, life, and motor coverage on behalf of insurers.
“Providing quality affordable healthcare in India is a complex challenge. We believe one way to tackle this issue is through the world of insurance,” Dahiya said.
PB Fintech’s initial investment of about $62 million will give it a 26% stake in PB Health, Dahiya said, without naming other shareholders.
Private investment in Indian healthcare has surged in recent years, with the sector drawing 84 PE/VC deals worth $3.2 billion in 2024 and 62 deals totalling $5 billion in 2023, according to a report by EY and IVCA.
"We believe India has a unique opportunity to leapfrog legacy models and build a resilient, inclusive health assurance system," Neeraj Arora, MD of General Catalyst said in a statement.
The investment comes just a year after General Catalyst expanded in India by merging with local venture firm Venture Highway and earmarking $500 million to $1 billion for fresh investments in the country.
