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Tag: PB Fintech

  • PB Fintech will Establish a Fully-Owned Subsidiary for Healthcare Services

    The board has given PB Fintech, an insurtech major, permission to establish a new subsidiary in order to provide healthcare services. “The incorporation of the wholly owned subsidiary has been approved by the board of directors of PB Fintech Limited through a circular resolution passed on December 03, 2024, to carry on the business of healthcare services,” the insurtech major stated in a filing with the BSE.

    PB Fintech added that the incorporation procedure would be finished after receiving approval from the appropriate authorities and that it will submit an application to float the new healthcare-focused company at a later time. At a face value of INR 10 each, the listed insurtech platform and other corporate nominees will initially purchase 50,000 equity shares of the new firm.

    The Subsidiary will be Launched With the Approx. Investment of $100 Mn

    Two months ago, Yashish Dahiya, the group CEO and chairman of PB Fintech, stated that the company is thinking about entering the healthcare industry and would invest $100 million one time to purchase a 30% share in a new healthcare startup. He brought up concerns at the time about middle-class families’ inability to afford the nation’s healthcare system.

    According to him, PB Fintech would try to close the gap that exists between insurance firms and hospitals. The announcement, however, caused a significant reaction from the markets. Following Dahiya’s suggestion at the company’s latest experiment, the shares fell as much as 10% during intraday trading on September 26. However, after he formally acknowledged the situation to the media on September 30, shares experienced a significant recovery.

    The New Subsidiary will Focus on Health Care and Allied Services

    The subsidiary, which has an INR 5 lakh authorised share capital, will concentrate on healthcare and related services. The business made it clear that upon incorporation, the new entity will become a connected party. Since PB Fintech is a professionally run company, it does not have a single promoter or promoter group.

    After receiving the required approvals from the Registrar of Companies and the Ministry of Corporate Affairs, the incorporation procedure will start. The transaction signifies PB Fintech’s strategic expansion into the healthcare industry, even though turnover statistics are not yet available due to the entity’s unestablished status.

    Financial Dynamics of PB Fintech

    The healthcare plans offered by PB Fintech had previously drawn criticism from broking firm Bernstein, which stated that the move would represent a “sharp departure from the company’s current asset-light model to a more asset-heavy space.” In terms of finances, PB Fintech keeps increasing its earnings. In the second quarter (Q2) of the fiscal year 2024–25 (FY25), the company reported a net profit of INR 51 Cr, compared to a net loss of INR 21.11 Cr in the same period last year. From INR 811.6 Cr in Q2 FY24 to INR 1,167.2 Cr in the reviewed quarter, revenue from operations increased by more than 43%.

    Paisabazaar Gets IT Department Notices Over Vendor Payments
    Paisabazaar receives notices from the IT Department concerning vendor payments, prompting scrutiny over potential irregularities in financial transactions.
    StartupTalkyNitin Konde

  • Paisabazaar Receives Notices From The IT Department Regarding Vendor Payments

    The Income Tax Department has sent warnings to Paisabazaar, an insurtech platform owned by PB Fintech, about a few vendor payments and the organisations connected to them. The Assistant Commissioner of Income Tax and the Deputy Director of Income Tax in Delhi sent out the notices.

    According to the company’s regulatory filing, one of the notices is issued under section 142(1) of the Income Tax Act, 1961, and the other is issued under the Prohibition of Benami Property Transactions Act, 1988. The filing further stated that the authorities have requested information and explanations about the payments made to a small number of vendors and the organisations connected to them in relation to the transactions and services they rendered to Paisabazaar.

    Paisabazaar to Provide Payment Documentations

    According to PB Fintech, the notice mainly asks Paisabazaar to submit records and information pertaining to these payments. Additionally, it stated that it will take all required actions to make its case to the relevant authorities. According to the statement, the corporation will take all required steps to present and defend its case before the appropriate body because it is a notification that requests specific information and documents. The business gave stakeholders the assurance that it is answering the notices within the authorised time frames.

    Paisabazaar was Always Under the Vigil

    Income tax authorities became aware of Paisabazaar earlier this year due to regulatory laxities and non-compliance with KYC standards. The Securities and Exchange Board of India (SEBI), a market watchdog, issued a show-cause notice to Yashish Dahiya, the former CEO and chairperson of PB Fintech, in June of this year. The $2 million investment made by PB Fintech FZ-LLC, Dubai, in November 2022 to purchase a 26.72% share in the outsourced marketing services firm YKNP Marketing Management was the subject of the show cause notice (SCN).

    Concerns over a possible violation of insider trading laws were raised by the SEBI notice. PB Fintech responded by saying that the company’s operations and finances are unaffected by this problem. The business added that it is seeking legal advice in order to respond appropriately and handle the situation in compliance with legal standards. The business recently declared that, as of October 17, 2024, its board committees would be reorganised. Chairperson and CEO Yashish Dahiya resigned, while Nilesh Bhaskar Sathe and Kitty Agarwal, both independent directors, joined the audit committee, which was presided over by Kaushik Dutta.

    PB Fintech Allots 27 Lakh Equity Shares Under ESOP Plan
    PB Fintech has allocated approximately 27 lakh equity shares under its ESOP plan, highlighting its commitment to rewarding employee contributions.
    StartupTalkyNitin Konde

  • Under the ESOP Plan, PB Fintech Allots Approximately 27 Lakh Equity Shares

    Under its Employee Stock Option Scheme (ESOP) 2021, PB Fintech, the parent company of the well-known insurtech company Policybazaar, has distributed about 27 lakh equity shares. On November 15, PB Fintech said in an exchange filing that its board has given its authority to distribute 27,85,962 equity shares to qualified employees under the 2021 plan. The company’s issued and paid-up share capital, after these shares are allocated, is INR 91,77,91,852, which is made up of 45,88,95,926 equity shares with a face value of INR 2 apiece.

    After qualified workers exercised their vested options under the PB Fintech Workers Stock Option Plan 2021, the Nomination and Remuneration Committee awarded them 27,85,962 equity shares with a face value of INR 2 apiece, the document stated.

    Stats Prior to Allotment

    The issued and paid-up share capital of PB Fintech, which included 45,61,09,964 equity shares, was INR 91,22,19,928 prior to share allocation. On the BSE, shares of PB Fintech ended the most recent trading session at INR 1725.15 each. According to the stock’s 15 November closing price, the freshly allotted equity shares are valued at INR 480 Cr. This follows the company’s distribution of 75,760 equity shares under the same ESOP Plan to qualified employees. Under its ESOP plan 2021, PB Fintech distributed 48.3 lakh equity shares earlier in June.

    Current Financial Report of PB Fintech

    In the second quarter (Q2) of the fiscal year 2024–25 (FY25), it posted a quarterly profit of INR 50.98 Cr, its fourth consecutive quarter.  Yashish Dahiya, the company’s chairman and Group CEO, acknowledged earlier in September that the business is thinking about entering the healthcare industry. According to reports, PB Fintech is expected to obtain board permission before making a one-time investment of $100 million to purchase a 30% interest in a new healthcare company.

    Current ESOP Scenario in India

    According to a 2024 survey of 160 companies, 78% of them offered employee stock option plans (ESOPs) to their staff, a considerable increase from 59% in 2021. This indicates that ESOPs are becoming more and more popular among startup owners. More firms are now offering ESOPs to all employees, not only senior management, according to a survey done by Saison Capital, XA Network, and Carta. Compared to one in four in 2021, one in three firms now provides these plans to all employees.

    Furthermore, the median ESOP pool size grew from 9% in 2021 to 12.6% in 2024, and 90% of founders now talk about ESOPs with candidates during interviews or job offers, up from 75% in 2021. Additionally, the reasons for providing ESOPs have changed; in 2024, 40% of founders cited cost reductions, up from 28% in 2021.

    The founders cited the necessity to retain people as the second most important reason for putting these plans into action, behind creating a sense of ownership and company culture. Even with this increase, fewer than 30% of founders still fully understand the complexity of ESOPs, a percentage that hasn’t changed since 2021.

    PB Fintech Secures RBI Approval for New Account Aggregator Business
    PB Fintech’s subsidiary has received RBI approval to operate as an Account Aggregator Business, enhancing its service offerings and financial inclusion.
    StartupTalkyNitin Konde