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Venture capital firm A91 Partners, which has backed Digit Insurance, is set to lead a Rs 500-crore investment in IPO-bound health insurance company Niva Bupa, people aware of the matter told YourStory.

The pre-IPO round, in which A91 Partners is investing around Rs 350 crore to Rs 400 crore, will happen at a valuation of around Rs 15,000 crore, the sources said, requesting anonymity, as the discussions are private.

Investment bank I-Sec is advising the deal, which is slated to go for regulatory approvals soon, they added. 

While A91 Partners is leading the round, a few family offices are also expected to invest, according to the people. The investment will be a full secondary-deal, giving some of Niva Bupa’s existing shareholders an exit.

Last year, the Mumbai-based VC firm had raised Rs 800 crore from Singapore’s Temasek, Paragon Partners, and Motilal Oswal PE fund.

A91 Partners and Niva Bupa did not respond to queries sent by YourStory. The story will be updated with their response.

Niva Bupa, previously called Max Bupa, had filed its draft red herring prospectus with the Securities and Exchange Board of India in July to raise around Rs 3,000 crore, including a fresh issue of Rs 800 crore.

Bupa Singapore Holding Pte Ltd and Bupa Investments Overseas Ltd are the promoters of the company. Bupa Singapore and Fettle Tone LLP will be participating in the company’s offer for sale (OFS) portion at the IPO.

A91 Partners’ decision to invest in a health insurance company follows its recent success in earning over 3x returns from its investment in Bengaluru-based Digit Insurance, which went public in May this year. 

The deal also comes at a time when many private market investors are diversifying their portfolios by shifting focus to proven business models, as technology funding has significantly slowed over the past two years.

A91 Partners recently backed Umeed Housing Finance, reflecting its strategic investments in stable, high-potential sectors.

Earlier this year, The CapTable reported that Alpha Wave Global, one of the world’s top startup investors, was considering halting startup and tech investments in India. A Bain & Company report highlighted that in 2023, traditional sectors attracted 75% of total PE-VC investments—up from 60% in 2022.