InsuranceDekho startup aims to disburse over $240 million in premiums by the end of FY23 after gaining its Series A funding round,
Heaptalk, Jakarta — India’s insurance policy aggregator platform, InsuranceDekho, has secured US$150 million in a Series A funding round in the form of equity and debt. This investment round includes US$36.5 million in funding raised earlier this year, marking one of the largest-ever funding rounds by an Indian insurance company.
Goldman Sachs Asset Management and TVS Capital Funds led this round. On the other hand, Investcorp, Avataar Ventures, and LeapFrog Investments also pour capital into this tech startup’s latest investment round.
In response to this latest capital injection, the Founder and Chief Executive Officer of InsuranceDekho, Ankit Agrawal, revealed the company will deploy the fresh injection to scale up its products and technology functions, broaden to new markets, establish new innovative products in the health and life categories, evolve the company’s MSME insurance business, amplify its leadership team and chase inorganic enhancement opportunities.
Currently, insurance penetration in India is below 5% of the GDP compared to 12% in the United States. According to the World Bank report, on average, Indians have generated about US$2,100 a year. In addition, a rating institution ICRA estimates that of those Indians who had bought insurance products for less than US$50 in 2017.
For this reason, CEO Agrawal considered going beyond the urban regions to reach a more extensive nationwide insurance penetration. To democratize insurance for the general public, he also affirmed to broaden the startup‘s reach and continue to build the technology infrastructure while empowering advisors to serve every village and region in India by the end of the year.
The business outgrowth of InsuranceDekho
Existing as an automobile aggregator by CarDekho in 2019, InsuranceSekho enables customers to compare and purchase motor and health insurance. The startup has enlarged into other business units, consisting of insurance of life, term, and retirement plans.
During its business journey, this insurance technology startup based in India has worked with major insurance providers in the country and contained a straight integration with nearly four-dozen firms through which it offers almost 400 insurance products. On the other hand, the startup has also widened its existence to around 98% of all zip codes in the country.
In terms of revenue, InsuranceDekho startup‘s earnings have climbed 61% to INR 47.91 Cr during the fiscal year 2022, compared to the former INR 29.71 Cr. Nevertheless, the company’s loss increased to 55.6%, attaining INR 72.29 Cr during the last fiscal year. Entering the new year of 2023, InsuranceDekho aims to disburse premiums worth over US$240 million.
“InsuranceDekho, with its agency model and digital DNA, proffers a robust mechanism to penetrate wider. We would continue to bolster the founders to demonstrate bringing alpha and were impressed with Ankit and the team with their execution abilities, operations excellence, and advanced technology superior. Thus, we are delighted to partner in the company’s journey of enabling access to insurance products to the 600,000 villages in India,” stated The Partner of TVS Capital, Praveen Sridharan, cited in TechCrunch.
