Expansion into Payment Aggregation Services

Policybazaar, a leading player in insurance and financial services, has unveiled plans to diversify its offerings by setting up a wholly owned subsidiary. ‘PB Pay Private Limited.’ Approved by the Board of Directors on March 20, 2024, this subsidiary aims to specialize payment collection services, Domestically and internationally, subject to regulatory approvals.

Incorporation Approval: Board Meeting Decision

  • The Board of Directors of Policybazaar approved the incorporation of PB Pay Private Limited on March 20, 2024.
  • The proposed business model of the subsidiary includes payment aggregation services, which is dependent on regulatory approvals from authorities such as the Reserve Bank of India (RBI).

Business scope and capital structure

  • PB Pay Private Limited is set to operate as a Non-Banking Financial Company (NBFC) with a focus on payment aggregation.
  • The authorized share capital for the subsidiary has been 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 classified as a related party.
  • Despite PolicyBazaar’s absence of a clear promoter, the transaction is expected to be conducted at arm’s length, given its status as a professionally managed entity.

PolicyBazaar sets up wholly owned subsidiary 'PB Pay Pvt Ltd': Expansion into payment aggregation services_40.1

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