Tarun Mathur & Policybazaar: The Inside Story of Building a 70,000 CR Market Cap Fintech
Discover Tarun Mathur's journey co-founding Policybazaar and now leading Policybazaar for Business. Insights on InsurTech, SME focus, funding & the long game.
The world of insurance – often seen as complex and traditional – has been undergoing a seismic shift, thanks in large part to technology. In India, one name stands tall in this InsurTech revolution: Policybazaar. But what's the story behind this powerhouse, and who are the minds driving it? This dossier dives deep into the journey of Tarun Mathur, Co-Founder & Chief Business Officer of Policybazaar for Business, drawing heavily from his candid conversation on the Founder Thesis podcast.
Check out the video of the conversation here or read on for insights.
From Military Brat to Accidental Entrepreneur 👨💻
Tarun Mathur's path to co-founding one of India's most successful startups wasn't straightforward. Born into a military family, his childhood involved constant travel across India. He jokingly recalls his engineering aspirations being short-lived after scoring -4 in maths on an entrance exam, leading him to pursue a Bachelor's in Information Technology (BIT) from IGNOU (2000-2003).
His professional journey began not in tech development, but in the burgeoning call center industry of the early 2000s. Seeking pocket money during college, he landed a job at HeroITES (2001-2004), making 300 calls a day selling DSL connections to US customers. That first job, paying Rs. 8,048 a month ("I thought I'd made it!"), instilled crucial lessons in sales, confidence, and resilience.
"300 calls every day, it just teaches you that inhibitions are mythical creatures. You can just get rid of them."
He developed a knack for analytics and workforce management, leading him to eBookers (June 2004 - August 2006) as a Team Leader for Workforce Management. After a stint managing Decision Support Systems at FE Global Technology Services (October 2006 - May 2008), the entrepreneurial leap beckoned.
The Birth of Policybazaar (2008): A Mission for Middle India 🛡️
The timing was challenging – the global financial crisis loomed, and India's startup ecosystem was nascent. Yet, the team had a clear mission, born from their shared middle-class, military backgrounds: to address the massive protection gap in India and make insurance transparent and accessible, especially for the often-mis-sold middle class.
"We wanted to protect the middle class. And we said, this is our mission. This is what we want to do. And this is where we will make our bread and butter from."
They saw insurance lagging behind the digital wave that travel tech (like their previous employer eBookers, or MakeMyTrip/Yatra) was riding. The initial idea was a pure online comparison platform – compare, click, buy. Reality hit quickly.
"When we set up our website, we had almost zero sales for first selling what 30, 40, 50 days... Insurance is a very serious, very involved purchase. It's a lot of jargons, lot of understanding... for a consumer to be able to understand complex products is asking too much of them."
This led to a crucial pivot: assisted sales. They hired people to call customers, not initially to sell, but to understand their doubts. These calls naturally evolved into sales conversations, forming the hybrid 'tech + touch' model Policybazaar is known for today.
Funding, Growth & Going Public 💰📈
Early funding was critical. Despite the 2008 crisis, InfoEdge saw the potential and invested ₹20 Crores in a seed round – a significant amount at the time. This capital injection was vital for building the technology and initial marketing efforts.
Over the next decade, Policybazaar scaled significantly:
Product Evolution: Started heavily with mandatory motor insurance (car, two-wheeler), which sold well digitally. Gradually educated the market and built significant traction in complex, high-value categories like Health Insurance and Term Life Insurance – products Tarun feels are critical for protection but were historically undersold in India.
Market Position: Evolved from a web aggregator to an Insurance Broker, allowing them to represent the customer and offer a wider range of products (partnering with ~50 insurance companies).
Customer Acquisition: Shifted from heavy reliance on performance marketing initially to building a strong brand (through TV ads etc.) driving significant direct traffic and SEO-based inquiries. They maintain a strict policy of not cold calling – only contacting users who initiate an inquiry.
IPO: Policy Bazaar's parent company, PB Fintech, went public in November 2021, a major milestone endorsing their business model and market leadership. Tarun views the IPO not as an end goal, but "just another milestone" in a long journey.
Policybazaar Today: Business Model & Innovation Deep Dive 💡
Policybazaar operates primarily as an insurance broker, earning commissions from insurance companies on policies sold. Commission rates vary by product (e.g., ~19.5% on the Own Damage part of motor insurance, ~12-15% on health and term life policies).
Key Business Units & Innovations:
B2C Insurance (The Core): Offering comparison and purchase of Motor, Health, Term Life, Travel, and Investment-linked insurance products, leveraging both self-serve digital journeys and assisted sales via their call centers.
Policybazaar for Business (PBfB): Launched ~4 years ago, this is Tarun Mathur's current focus area. It targets the vast but underserved SME/MSME market (63 million businesses contributing 30% of GDP, yet only 7-10% insured).
Strategy: Leverages Policybazaar's digital prowess (SEO, performance marketing on Google, LinkedIn, Facebook) for acquisition, competing with legacy brokers often focused on large corporates.
Value Proposition: Offers tailored business insurance (Liability, Cyber, Marine, Fire, Workmen's Compensation, Group Health etc.) with unique, tech-enabled service layers.
Cyber Insurance Example: Provides free vulnerability scanning and a Quick Reaction Team (QRT) of lawyers/consultants to handle breaches and ransomware negotiations, easing the burden on SME CTOs.
Group Health Example: Bundles policies with a comprehensive wellness app offering teleconsultation, diagnostics, pharmacy discounts, and even disease reversal programs, enhancing employee value and engagement.
Revenue: B2B is now a "significant part" of Policybazaar's overall business. While the exact percentage isn't disclosed publicly, growth is strong.
Reinsurance Broking: A newer vertical (~1 year old) where Policybazaar acts as a broker between Indian insurance companies and global reinsurers.
Purpose: Helps insurers manage catastrophic risk (like floods, earthquakes) and, crucially, enables product innovation. By accessing global data and reinsurance capacity, Policybazaar aims to bring innovative products (like parametric insurance with automated payouts) to the Indian market.
Tarun Mathur: Role, Vision & Leadership Philosophy 🧭
As Co-Founder and Chief Business Officer, Tarun Mathur has worn many hats over 17 years, including Head of Analytics, Revenue Management, Business Development, Life Insurance, and Strategic Initiatives. His current focus is scaling Policybazaar for Business.
His leadership philosophy, echoing the company's DNA, revolves around:
Customer Proposition Obsession: Believing the core differentiator is the value delivered, not just the tech or marketing. Product development stems directly from customer needs identified via data.
Data-Driven Decisions: Using analytics extensively – from optimizing funnels and sales processes to developing new products and negotiating with insurers.
Building for the Long Term (20+ Years): Emphasizing sustainable growth and building an enduring institution over short-term profits or quick exits.
Empowering Teams: Fostering a culture where the focus is always on improving the customer proposition, assuming operational teams will execute if the offering is right.
"If you're going to found something... think of building this for the next 20 years. Think very long term... Please think that I'm going to retire from this company. And I would have built a masterpiece at least in my own eyes."
The Road Ahead 🛣️
Policybazaar's journey from a fledgling startup in 2008 to a public InsurTech leader is a testament to its clear mission, customer focus, and adaptability. Under leaders like Tarun Mathur, the focus remains on deepening their market penetration, leveraging technology for unique propositions (especially in the B2B and reinsurance space), and building a business for the long haul. Their story offers invaluable lessons in navigating disruption, scaling responsibly, and staying true to a core vision.
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