PB Fintech, the parent company of Policybazaar, has signalled its intent to operate as a managing general agent (MGA) in the insurance sector once the Insurance Regulatory and Development Authority of India (IRDAI) notifies the final guidelines. MGAs are specialized intermediaries that handle underwriting and claims on behalf of insurance companies, giving them more operational control than typical brokers.
Currently, MGAs are not allowed to operate in India. In December 2025, the Centre passed the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, which recognised MGAs as insurance intermediaries for the first time. However, a final framework governing their operations has not yet been announced.
Addressing analysts during the Q3 FY26 earnings call, Dahiya said MGAs would do to insurance what non-banking financial companies (NBFCs) did to the banking sector.
Sarbvir Singh, CEO of Policybazaar, said the MGA model fits neatly into the insurtech company’s business model, noting that it would allow the firm to make decisions on both underwriting and claims.
As an online insurance aggregator, Policybazaar primarily earns revenue through commissions from insurance companies for every policy sold on its platform. It also generates income through policy renewals and lead generation, while offering value-added services such as claim assistance.
Once it starts operating as an insurance MGA, it would be able to undertake additional activities, including helping design insurance products, supporting underwriting, and settling claims on behalf of insurers.
PB Fintech Mulls Fundraising to Pursue Acquisitions
In a separate exchange filing, PB Fintech said its board will meet on Thursday (February 5, 2026) to consider raising capital through a qualified institutional placement (QIP), to fund inorganic growth opportunities. These include potential acquisitions and strategic investments in domestic and international markets. The company added that no specific acquisition target has been identified so far.
During the post-earnings call, Dahiya declined to comment on the size of the proposed QIP, noting that the fundraise is subject to board approval. He added that all of PB Fintech’s businesses, including Paisabazaar and newer initiatives such as PB Partners and PB Pay, are generating cash.
“We may think about investing once we get the pension model; we may think about investing a bit there. But again, as I said, that will be minuscule compared to the overall organisation in terms of profit capability, etc. Yes, if we get board and shareholder approval and everything goes ahead, we would, over time, like to diversify both in India and internationally. Some of the capital allocation might go in that direction,” Dahiya said.
Over the past few years, the company has moved deeper into the value chain through new initiatives such as PB Healthcare and PB Pay, according to Alok Bansal, executive vice chairman at PB Fintech. “These learnings can potentially be taken to other markets, whether it’s Southeast Asia, the Middle East, or Europe,” he added.
Outside India, Policybazaar operates in the UAE as a consumer lending and insurance marketplace, offering health and life insurance, as well as financial products such as loans and credit cards on the same platform. The company said its UAE insurance premium rose 62% year-on-year (YoY) in Q3 FY26 and that the business has been consistently profitable for four consecutive quarters.
Core Online Business Vs New Initiatives
PB Fintech’s core online business comprises Policybazaar and its credit arm, Paisabazaar. Revenue from this vertical jumped 35% YoY to Rs 1,039 crore in the quarter ended December 2025, compared with Rs 771 crore in Q3 FY25. On a quarter-on-quarter (QoQ) basis, it rose 8% from Rs 958 crore.
Policybazaar contributed Rs 924 crore to the company’s total revenue in Q3 FY26, marking a 42% increase from Rs 651 crore in the same quarter last year. Sequentially, revenue from this vertical grew 8% from Rs 852 crore in the previous quarter. Growth was driven by healthy insurance premium collections.
Meanwhile, Paisabazaar saw a 4% decline in revenue to Rs 115 crore during the quarter under review, compared with Rs 119 crore in Q3 FY25. However, on a sequential basis, revenue from the credit vertical grew 8% from Rs 106 crore in Q2 FY26. Through its lending arm, PB Fintech disbursed credit worth Rs 9,986 crore during the quarter, up 84% from Rs 5,437 crore in Q3 FY25.
New initiatives, including PB Partners, PB for Business, PB UAE, and PB Connect, scaled rapidly. Revenue from this vertical surged 41% to Rs 732 crore in Q3 FY26, compared with Rs 521 crore in the corresponding quarter last year. On a QoQ basis, revenue grew 12% from Rs 655 crore. Its insurance broking arm, PB Partners, expanded to over 4 lakh insurance advisors across 19,000 pin codes.
Key Financial Metrics (Q3FY26)
- Insurance Premium: Up 45% YoY at Rs 7,965 crore
- Operating Revenue: Jumped 37% YoY to Rs 1,771 crore
- Net Profit: Surged 165% YoY to Rs 189 crore
