Policybazaar owner PB Fintech announced on Thursday that its new healthcare venture has raised $218 million in a seed round, marking its entry into India's rapidly expanding healthcare industry.
PB Health will use the funds to open four to five hospitals in and around New Delhi by 2027, with a long-term goal of establishing a 25-30 hospital network across ten Indian cities, according to PB Fintech chairman Yashish Dahiya in an interview.
The fund raise includes $50 million from General Catalyst, a Silicon Valley-based company that also backs Indian startups Cred and Spinny and led a $340 million round in Mumbai-based Zepto, a startup focused on quick commerce, last year.
Selling health, life, and auto insurance on behalf of insurers, Policybazaar is the biggest insurance aggregator in India.
"Providing high-quality, affordable healthcare in India is a complex challenge. We believe that one approach to addressing this issue is through the world of insurance," Dahiya stated.
PB Fintech's initial $62 million investment will give it a 26% stake in PB Health, Dahiya said, without naming other shareholders.
According to an EY and IVCA study, private investment in Indian healthcare has grown recently, drawing 84 PE/VC deals valued at $3.2 billion in 2024 and 62 deals valued at $5 billion in 2023.
Neeraj Arora, MD of General Catalyst, said, "We think India has a unique opportunity to leapfrog legacy models and build a resilient, inclusive health assurance system."
The investment comes just a year after General Catalyst expanded in India by merging with local venture firm Venture Highway and setting aside $500 million to $1 billion for new investments in the country.
