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Temasek to buy Intel Cap's stake in Policybazaar: report
SINGAPORE sovereign fund Temasek is picking up close to an 8 per cent stake of Intel Capital, the investment arm of tech major Intel, in insurance web aggregator Policybazaar.com for around Rs 110 crore, The Times of India reported.
The newspaper quoted sources close to the transaction as saying the deal, which values Policybazaar upwards of Rs 1,500 crore, would be closed in the next two to three weeks.
According to the report, Intel Capital, which had picked up its stake for around Rs 30 crore in April 2011, will completely exit Policybazaar following the sale.
When contacted by The Business Times, Temasek said, "As a matter of policy, we do not comment on market speculation and rumours.''
Intel Capital could not be reached for a comment on the deal, but Policybazaar CEO Yashish Dahiya told the Indian media that the company is "always in talks with investors to raise money''.
The Times of India reported that Policybazaar, which helps consumers to compare and buy insurance policies, has seen two major investments over the last couple of months. Founders United Trust - which comprises former managing director of Canaan Partners Alok Mittal, Google India MD Rajan Anandan, Chrys Capital cofounder Ashish Dhawan, MakeMyTrip founder Deep Kalra and HealthKart.com founder Prashant Tandon - recently picked up a stake of around 1.5 per cent in the company for an undisclosed amount.
It said the policy aggregator had raised Rs 300 crore in April from PremjiInvest, Steadview Capital, Ribbit Capital and Tiger Global. Tiger Global is the single largest investor in Policybazaar with more than 30 per cent stake while Info Edge owns 18 per cent.
Investors together hold about 70 per cent in the company while the management and founders, including Mr Dahiya, hold the balance. Mr Dahiya personally holds 9 per cent.
Policybazaar is the single largest insurance distributor (online and offline) outside of banks in India.