May 8 (Reuters) - Policybazaar owner PB Fintech

said on Thursday its new healthcare venture has raised

$218 million in a seed round, marking its entry into India's

fast-growing healthcare industry.

The venture, PB Health, will use the funds to set up four to

five hospitals in and around New Delhi by 2027, with a long-term

plan to build a 25-30 hospital network across 10 Indian cities,

PB Fintech chairman Yashish Dahiya told Reuters in an interview.

The fund raise includes $50 million from Silicon

Valley-based General Catalyst, which last year led a $340

million round in Mumbai-based quick commerce startup Zepto and

is a backer in Indian startups Cred and Spinny.

Policybazaar is India's largest insurance aggregator,

selling health, life, and motor coverage on behalf of insurers.

"Providing quality affordable healthcare in India is a

complex challenge. We believe one way to tackle this issue is

through the world of insurance," Dahiya said.

PB Fintech's initial investment of about $62 million will

give it a 26% stake in PB Health, Dahiya said, without naming

other shareholders.

Private investment in Indian healthcare has surged in recent

years, with the sector drawing 84 PE/VC deals worth $3.2 billion

in 2024 and 62 deals totalling $5 billion in 2023, according to

a report by EY and IVCA.

"We believe India has a unique opportunity to leapfrog

legacy models and build a resilient, inclusive health assurance

system," Neeraj Arora, MD of General Catalyst said in a

statement.

The investment comes just a year after General Catalyst

expanded in India by merging with local venture firm Venture

Highway and earmarking $500 million to $1 billion for fresh

investments in the country.