the latest news as InsuranceDekho secures a remarkable $60 million in an ongoing Series B funding round. Gain insights into the investors, their plans, and the startup’s visionary journey towards revolutionizing the Indian insurance landscape.
InsuranceDekho
In a significant development for the insurtech sector, InsuranceDekho, an innovative player in the insurance landscape, has successfully raised $60 million in an ongoing Series B funding round. This funding comes in a mix of equity and debt, signaling a growing interest in the startup’s potential. Although InsuranceDekho has chosen to remain tight-lipped about the matter, insider sources reveal that this round values the company at a remarkable $500 million.
The funding round, which attracted a diverse range of investors, was spearheaded by notable names in the financial world, including Mitsubishi UFJ Financial Group, BNP Paribas Cardif’s insurtech fund (managed by Eurazeo), Beams Fintech Fund, and the Yogesh Mahansaria Family Office. Furthermore, existing investors, including TVS Capital, Goldman Sachs Asset Management, and Avataar Ventures, enthusiastically participated in this capital injection.
Ankit Agrawal, the founder and CEO of InsuranceDekho, offered insight into this funding milestone, stating, “The funding round is still in progress, and it could become bigger. We haven’t decided on the exact size of the Series B round yet, but we’ve seen a lot more interest and demand from investors than we originally expected, about two to three times more.”
This substantial influx of capital is expected to play a pivotal role in shaping the future of InsuranceDekho. The startup has outlined a clear roadmap for the allocation of funds, which includes boosting marketing efforts, expanding its reach into India’s hinterland, enhancing its technological infrastructure, exploring inorganic growth opportunities, and introducing new initiatives such as reinsurance. These strategic moves reflect InsuranceDekho’s commitment to democratizing and revolutionizing the insurance landscape in India.
InsuranceDekho’s expansion strategy has been marked by aggressive acquisitions, with notable examples being the acquisition of Verak, a Mumbai-based SME-focused insurance distributor, and IRSS, one of the largest institutional insurance distributors in the state of Gujarat, in April 2023.
Ankit Agrawal emphasized, “Our aim has always been to make insurance accessible and user-friendly for all Indians, and this funding will allow us to accelerate our efforts, reach more customers, and innovate further in the insurtech space. The insurance sector in India is on the cusp of a tech-backed revolution, and I believe InsuranceDekho is well positioned as one of the pioneers leading this transformation.”
InsuranceDekho, founded by Agrawal and Ish Babbar in 2017, has enjoyed significant growth and is on track to achieve Rs 3,600 crore in premiums this financial year. The company’s ambitious goal includes having 200,000 agent partners on its platform by March 2024. Currently, the insurtech player has a presence in more than 1,500 regions, covering 98 percent of pin codes across the country. Impressively, over 90 percent of its premiums come from Tier 2 and beyond regions, highlighting the startup’s success in reaching underserved markets. To date, InsuranceDekho has served six million customers.
InsuranceDekho, as the insurance arm of the car-selling unicorn CarDekho, is poised for continued growth. Agrawal revealed, “We will continue to grow 2x YoY as we have been doing for the past few years. We aim to grow our non-motor businesses like MSME, launch new product categories, and get into the reinsurance broking business.”
A significant component of InsuranceDekho’s growth strategy is focused on mergers and acquisitions (M&A). Agrawal explained, “We continue to explore inorganic opportunities in various areas like new product categories, geographical expansion, emerging and niche technologies, etc. Currently, we’re evaluating our strategic options and are open to opportunities that will help us grow our company.”
This latest funding round reinforces InsuranceDekho’s position as a frontrunner in India’s insurtech sector and underlines the increasing recognition of its innovative approach to making insurance more accessible and user-friendly for all. With substantial resources at its disposal, the company is set to embark on a new phase of expansion and transformation.
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