PB Fintech, the parent company of Policybazaar, has approved an equity infusion of up to ₹20 crore into its wholly owned payments subsidiary, PB Pay. According to a stock exchange filing, the company's mergers and acquisitions and investment committee on June 30, 2026 approved this investment in one or more tranches. The capital will be used to support the subsidiary's business expansion and meet the Reserve Bank of India's capital adequacy and net worth requirements for operating as a payment aggregator. PB Pay, incorporated on April 09, 2024, recently received a Certificate of Authorisation from the RBI to commence payment aggregator operations. The investment will be made in cash consideration, subscribing to equity shares of ₹10 each, with PB Pay currently holding an authorised capital of ₹50 crore and paid-up capital of ₹37 crore as of March 31, 2026. As per the latest reports, the ₹20 crore investment would not alter PB Fintech's ownership in PB Pay, with the subsidiary continuing to remain 100% owned by the company.
Separately, PB Fintech approved the incorporation of two wholly owned step-down subsidiaries in the Dubai International Financial Centre (DIFC) through its overseas subsidiary, PB Fintech FZ LLC. The first proposed entity, Policybazaar Financial Advisors (DIFC) LLC, will seek a Category 4 licence from the Dubai Financial Services Authority (DFSA) to provide financial advisory services and arrange investment deals relating to long-term insurance contracts. PB Fintech FZ LLC will invest up to AED 1.5 million (around ₹4 crore) in this entity. The second proposed company, PB Re Brokers (DIFC) LLC, will focus on reinsurance broking and managing general agent (MGA) services and will seek necessary DFSA approvals to undertake these regulated activities, with an investment of up to AED 1.7 million (around ₹5 crore). Both entities will be fully owned by PB Fintech FZ LLC and will function as step-down subsidiaries of PB Fintech. PB Fintech has had a presence in the UAE since 2018 through PB Fintech FZ LLC, which operates an online financial marketplace in the country, and the latest move broadens its regional footprint into regulated insurance advisory and reinsurance businesses.
Both Dubai entities will be wholly owned by PB Fintech FZ LLC and will function as step-down subsidiaries of PB Fintech, strengthening the group's international insurance distribution and reinsurance capabilities. The investment will be made through subscription to equity shares, with PB Fintech continuing to hold a 100 per cent stake in the subsidiary. This expansion demonstrates PB Fintech's strategic focus on building comprehensive financial services capabilities across multiple jurisdictions. The transaction with PB Pay is considered a related party transaction but conducted at arm's length, as PB Fintech is a professionally managed company with no identifiable promoters. PB Pay, incorporated in April 2024, received the RBI's in-principle authorisation to operate as an online payment aggregator in April 2025 and was granted the Certificate of Authorisation in February 2026 to commence operations under the Payment and Settlement Systems Act, 2007. The company had not commenced business operations as of March 31, 2026, and reported nil turnover for the fiscal year.
Shares of PB Fintech ended 1.04% higher at ₹1,640 apiece on the NSE on Tuesday following the announcement of the strategic investments. However, the stock has declined nearly 10% over the past year, underperforming the Nifty Midcap 50 index, which has gained about 5% during the same period. The market response reflects investor sentiment toward the company's expansion strategy and its performance relative to broader market indices.
