The latest round of fund raising by PolicyBazaar.com was done to specifically to rope in SoftBank as an investor, said Yashish Dahiya, co-founder and group CEO of EtechAces, parent company of the online insurance aggregator.
PolicyBazaar.com allows people to compare and buy insurance online, joined unicorn club after raising $200 million through a fresh round of investment led by Japan's SoftBank and its current valuation stands at one billion dollars.
“The primary reason for raising this particular round was to get SoftBank on board. We already had the capital," Dahiya said.
"There was about $120 million of capital in the bank before we raised this round, which has now gone up to about $330 million in the bank. SoftBank had to invest a minimum of $150 million and take a certain amount of share in the company,” he added.
Info Edge, Softbank, Temasek, Tiger Global Management and True North are the key investors of the company.
"SoftBank's culture of backing disruptive businesses and industry leaders with long-term capital investment gels well with our own values and vision of creating a transparent and empowering financial products marketplace," Dahiya said.
The Info Edge management told CNBC-TV18 that they are constantly looking to invest in startups.
"Info Edge will be investing $61 million of which part will be invested for primary purposes and part for secondary purposes," Dahiya said.
Info Edge and SoftBank are set to jointly invest $90 million in ETechAces, PolicyBazaar's parent, for 8.93 percent stake.
The website, which was founded in 2008, hosts over 100 million visitors yearly and records sale of nearly 300,000 transactions a month, the company had said in its statement.