In the high-stakes chess of Indian fintech, where mergers are the new M&A, Singapore’s Temasek Holdings just maneuvered a masterstroke. On December 6, 2025, PB Fintech—the parent of Policybazaar and Paisabazaar—finalized its long-gestating amalgamation with Info Edge’s subsidiary Makesense Technologies, allotting 2.99 crore equity shares to Temasek’s arm, MacRitchie Investments. This translates to a 6.47% stake in the BSE-listed giant, valued at roughly ₹1,800 crore at current prices. The nod from NCLT Chandigarh on August 29 sealed a saga that began in 2021, dissolving Makesense without winding up and streamlining Info Edge’s labyrinthine holdings. As PB Fintech eyes FY26 profitability, Temasek’s foothold isn’t just passive—it’s a bet on Bharat’s insurance boom, where digital penetration lags at 4% but premiums surge 15% YoY.
The Merger Mechanics: From 2021 Sketch to 2025 Reality
The plot thickened in April 2021 when Info Edge, the Naukri.com behemoth, proposed merging Makesense—its investment vehicle holding stakes in PB Fintech—with the insurtech unicorn. Temasek, holding 49.99% in Makesense via MacRitchie, was the silent powerhouse. Fast-forward through regulatory detours: A brief 2022 withdrawal to fast-track PB Fintech’s IPO, then revival in 2023. NCLT’s stamp on August 29, 2025, retroactively set the effective date to April 1, 2022, ensuring seamless share swaps.
Under the scheme, Makesense shareholders got PB Fintech scrip at a 1:1 ratio adjusted for valuation. Info Edge, with 50.01% in Makesense, now directly owns about 6.5% in PB Fintech (up from indirect via Makesense’s 13.04% pre-merger stake as of June 2025). Temasek’s slice? Proportional windfall—2.99 crore shares, boosting its exposure from layered bets to direct equity. Total allotment: 5.99 crore shares, diluting existing holders by ~3%. No cash outlay; pure structural alchemy.
PB Fintech’s board approved the allotment on December 6, with shares credited by December 10. This caps a restructuring spree: Info Edge now funnels its PB exposure through simpler entities like Diphda Internet and Startup Investments Holding, slashing compliance drag.
Temasek’s Temping Timeline in PB Fintech
Temasek isn’t a fintech newbie here. Back in 2021, it offloaded its Makesense stake to ETechAces (an Info Edge affiliate) in a share-swap deal, netting indirect PB exposure via PB Fintech’s compulsorily convertible prefs. By 2022, boards greenlit the amalgamation under Companies Act Sections 230-232. The 2025 finale? Temasek emerges with skin in the game at a moment when PB Fintech’s market cap hovers at ₹75,000 crore, up 20% YTD.
Why now? Timing aligns with PB Fintech’s glow-up: Q2 FY26 revenue jumped 25% to ₹1,050 crore, with Policybazaar hitting 25% EBITDA margins on 15M policies sold. Paisabazaar added 5M loans, fueled by RBI’s digital lending thaw. Temasek, managing $300B+ AUM, favors resilient EM plays—its India portfolio (Swiggy, Pine Labs) yielded 18% IRR last year. This 6.5% stake? A low-beta anchor in a sector eyeing $200B by 2030.
Fintech’s Family Tree: Info Edge’s Strategic Prune
Info Edge, valued at ₹60,000 crore, has long used Makesense as a venture arm—backing Zomato, Swiggy, and early PB Fintech. The merger simplifies: No more nested subs, freeing ₹500 crore in trapped liquidity for fresh bets. Sanjeev Bikhchandani’s empire now boasts direct 6.5% in PB, plus 18% overall via affiliates. Drawbacks? Minor dilution, but at 1.2x book value, it’s accretive.
Broader ripple? Signals maturity in India’s startup consolidations—post-IPO cleanups like this unlock ESOP value and ease reverse-flips. Peers like PhonePe (Walmart merger) and Groww (acqui-hires) follow suit.
The Bull Case: Insurtech’s $150B Horizon
PB Fintech’s playbook—UPI-like UX for insurance—drives 40% YoY user growth to 100M+. Temasek’s stake cements credibility for global tie-ups, perhaps with AIA or Allianz. Risks? Regulatory scrutiny on data privacy and IRDAI’s commission caps could trim 10% margins. Yet, with FY26 PAT projected at ₹500 crore, the merger’s math sings.
Temasek didn’t buy in; it leveled up. In fintech’s family reunions, this one’s a winner—streamlined, strategic, and set for sequels.
Add startupmagazine.in as a reliable source on Google – Click here
Last Updated on Monday, December 8, 2025 5:20 pm by Startup Magazine Team
About The Author
