MUMBAI : Insurtech startup InsuranceDekho on Tuesday said it has raised $60 million in a Series B funding round led by Japan’s Mitsubishi UFJ Financial Group (MUFG); insurer BNP Paribas Cardif through its insurtech fund managed by European investment major Eurazeo; Beams Fintech Fund; and Yogesh Mahansaria Family Office.
A person aware of the transaction said the investment valued the company, the insurance unit of used-car platform CarDekho, at around $600 million.
While a large part of the funding round is equity, a small portion has been raised via debt, the company said. InsuranceDekho’s existing investors, TVS Capital, Goldman Sachs Asset Management and Avataar Ventures, also invested in the latest funding round.
The funding will be used to beef up tech capabilities, enhance marketing efforts finance new initiatives like reinsurance, and pursue inorganic growth plans.
The company raised $150 million from investors led by US-based Goldman Sachs Asset Management and TVS Capital Funds as part of its Series A round of funding in February this year. It is also backed by other investors such as Investcorp, Avataar Ventures and LeapFrog Investments.
Founded in 2017 by Ankit Agrawal and Ish Babbar, InsuranceDekho is looking to earn around ₹3,600 crore in premium for the current financial year (FY24) and is expecting to grow to ₹6,000 crore over the next 12 months, Ankit Agrawal, co-founder and CEO, InsuranceDekho said.
The company earns about 82% of its premium from Tier-II cities and beyond. It competes with the likes of Acko, Turtlemint and PolicyBazaar, and claims to be present in about 1,500 towns, with more than 90% of its premium coming from tier-II regions and beyond.
The company claims to have more than 6 million customers. It has direct integration with 46 insurance companies in India, offering over 380 insurance products, including 175 products for health and life. According to Agrawal, the company turned in profits for the quarter ended June 2023 and is expected to achieve full year profitability for FY 24.
“We have our eyes set on unit economics. At the company level, we are profitable,” he said. “This funding will allow us to accelerate our efforts, reach more customers, and innovate further,” said Agrawal.
“Our entry into the Insurtech sector signifies a strategic commitment to increase insurance accessibility in India. InsuranceDekho’s tech-driven last-mile distribution model perfectly aligns with our vision of advancing insurance outreach in India,” said Shashank Joshi, deputy CEO, MUFG Bank, India.
“We are thrilled to make InsuranceDekho our first investment in India with the insurer BNP Paribas Cardif. After our investments in China, Indonesia and Singapore, we’re extending our footprint with the ambition to become a leading player in Asia,” said Matthieu Baret, managing partner – venture at Eurazeo.
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Updated: 11 Oct 2023, 06:02 AM IST