PB Healthcare secures $218 million in seed funding from PB Fintech, General Catalyst

Policybazaar promoter Yashish Dahiya's healthcare venture on Thursday said it has raised $218 million in seed capital at a valuation of $243 million. 

While Policybazaar parent PB Fintech invested $62 million for a 26% stake in PB Healthcare Services Pvt. Ltd, General Catalyst infused $50 million for 20.57%. The names of other investors could not be ascertained.

Incorporated on 1 January 2025, the Gurugram-based healthcare firm will use the proceeds to set up a 1,000-bed hospital network in the National Capital Region and accelerate product development and technological innovation.

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This is part of the startup's broader aim to build an end-to-end platform that integrates healthcare and insurance.

To be clear, PB Healthcare is a separate entity from listed PB Fintech, which owns Policybazaar and Paisabazaar. Though Yashish Dahiya, chairman and group chief executive of PB Fintech, is leading the venture, PB Fintech’s role will be that of an incubator and not a long-term owner.

In 2024, Dahiya revealed his plans to enter the healthcare space through a one-time investment of up to $100 million for a 20-30% stake. He explained the new healthcare entity will eventually generate its own resources for growth and may attract investments from private equity firms and other financial institutions.

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“Our vision is to create a truly integrated healthcare ecosystem where patients can experience frictionless, high-quality care. Our focus remains on building a tech-first healthcare platform that improves outcomes, enhances trust, and redefines the care journey for millions across India,” said Dahiya.

The company will improve long-term health outcomes, reduce avoidable surgeries, and deliver a more predictable, full-stack patient experience by operating its own hospitals, and leveraging technology, analytics, and a preventive-care approach, PB Healthcare said in the statement.

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The hospital sector has been seeing significant traction, with a boom in private equity interest, single-speciality chains growing, and leading hospitals in expansion mode. According to Crisil Ratings, private hospitals in India plan to add approximately 10,000 beds over the current and next fiscal years, backed by investments of around ₹25,000 crore. This surge is driven by high occupancy rates nearing 70% and increased demand for quality healthcare services.

Top hospital chains are investing heavily in expanding bed capacity. Apollo Hospital has announced plans to add over 3,500 beds across cities like Pune, Kolkata, Hyderabad, Gurugram, and Delhi over the next 3-4 years. Max Healthcare plans to add 3,700 beds across key locations in India by 2028, with an investment of ₹6,000 crore. Fortis Healthcare is adding 2,200 beds over the next three years, and Aster DM Healthcare has a plan to add 1,500 beds by FY27.

“The Indian healthcare services sector is seeing a lot of growing interest given the largely unorganised space and growing demand…there’s a lot of room to grow…additionally this is a business that is purely domestic and insulated from geopolitical shifts, making it an attractive bet for investors,” an industry executive, speaking on condition of anonymity, told Mint.

Icra estimates that hospitals in its sample set will see revenue growth of 12-14% in FY25. Improving operating leverage, along with continued cost optimisation and digitisation measures, will support a healthy operating profit margin of about 22-23%, the rating agency said.

Narayana Hrudalaya launched its own insurance arm in 2024. Its subsidiary Narayana Health Insurance Ltd received a license from the Insurance Regulatory and Development Authority of India (IRDAI) to operate as a standalone health insurance company in January 2024. The firm’s Aditi Plan which offers coverage of ₹1 crore for surgeries and ₹5 lakh for medical management, with an annual premium of ₹10,000, aimed at families, and its Arya Health Plans, launched earlier this year, provide coverage options ranging from ₹25 lakh to ₹1 crore, with flexible top-up options starting at ₹25,000, combining hospitalisation and outpatient benefits.