PolicyBazaar PB Fintech holding company to acquire MyLoanCare

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PB Fintech – parent company of online insurance and credit comparison platforms Policybazaar and Paisabazaar – will acquire the Gurugram MyLoanCare-based lending marketplace for ₹ 40.41 crore.

It will initially acquire 24.93% of the capital of MyLoanCare Ventures and, subsequently, will increase its stake to around 70.1%. The acquisition (in two stages) is expected to be finalized in six months.

MyLoanCare was established in 2013 and this marketplace allows customers to compare various loan products and interest rates. This business model is similar to PB Fintech’s Paisabazaar platform, which has over 50 percent market share in the credit market.

After the investment, MyLoanCare would be an associated company of PB Fintech and also a related party.

Also read: PB Fintech branch invests 10.8 crore more in Visit Health and holds minority stake

In another decision, the board of directors of PB Fintech on Monday gave its approval to create a wholly owned subsidiary to undertake the activities of an account aggregator (AA). “Incorporating an account aggregator will take advantage of the facility without external dependence on other account aggregators for information gathering, cost reduction / revenue hosting and offers transparent solutions, ”PB Fintech said in a regulatory filing. PB Fintech promoted to AA must be approved by the Reserve Bank of India.

Simply put, Account Aggregator is a technology service provider that shares a client’s information with institutions or anyone else as per client’s instructions (consent-based infrastructure). The client’s financial information may not be used for other purposes by the account aggregator.


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