Indian insurance technology startup InsuranceDekho has raised $60 million in an ongoing Series B funding round, signaling strong investor confidence in the company’s vision to drive insurance inclusion across India’s underinsured population.
InsuranceDekho was incubated within the automobile marketplace group CarDekho. It was founded in 2018 by Ankit Agrawal, a former executive at CarDekho, with the goal of making insurance buying easy and accessible for consumers.
Funding Round Attracts Marquee Investors
The Series B funding came from several high-profile investors, including Mitsubishi UFJ Financial Group, BNP Paribas Cardif’s insurtech fund managed by Eurazeo, Beams Fintech Fund, and Yogesh Mahansaria Family Office.
Existing backers like TVS Capital, Goldman Sachs Asset Management, and Avataar Ventures also participated again in this round. While the final size of the round is still undetermined, sources suggest it has exceeded initial expectations and values the company at over $600 million.
This latest capital infusion comes just months after InsuranceDekho raised $150 million in Series A funding in February 2023, highlighting rapid funding momentum.
Strategic Roadmap for Growth Capital
The freshly acquired funds will fuel InsuranceDekho’s ambitious growth plans on multiple fronts. Planned initiatives include boosting marketing efforts significantly, expanding distribution presence in rural areas and smaller towns, scaling up its proprietary technology platform, exploring inorganic growth opportunities, and launching new projects like a Reinsurance business.
The company has already been actively acquiring regional insurance distributors to penetrate India’s rural and semi-urban markets. Recently, it acquired Verak and IRSS, prominent distributors in Mumbai and Gujarat respectively.
India’s Insurance Market Ripe for Disruption
India’s insurance penetration remains below 5% of GDP, compared to 12% in the US. The average income is around $2100 per capita, and average insurance spending is less than $100 per customer. This showcases the massive headroom for growth in the Indian market.
InsuranceDekho aims to disrupt this market and make insurance affordable and accessible across all sections of society. Founder and CEO Ankit Agrawal aims to drive insurance inclusion at scale and transform how Indians perceive and buy insurance.
Robust Growth and Ambitious Roadmap
Despite India’s insurance gap, InsuranceDekho has witnessed tremendous growth, serving 6 million customers already. It aims to achieve Rs 3,600 crore in premiums this fiscal year and have 200,000 partner agents by March 2024.
Strategic mergers and acquisitions will be crucial in expanding into new product categories, entering new geographies, and harnessing emerging technologies. InsuranceDekho intends to continue its 2x YoY growth trajectory going forward.
“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,” Ankit Agrawal, founder and CEO of InsuranceDekho told Moneycontrol.
Company CEO also said ” 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 at the cusp of a tech-backed revolution and I believe InsuranceDekho is well positioned as one of the pioneers leading this transformation.”
Market Leadership through Distribution Innovation
InsuranceDekho covers 98% of India’s pin codes and generates over 90% of premiums from tier 2 cities and beyond. It directly partners with over 40 insurance firms to offer 400+ insurance products.
The company’s army of over 150,000 gig agents drive on-ground distribution and insurance education across India’s remotest corners. With this tech-enabled partner agent model, InsuranceDekho has emerged as a pioneer in unlocking the massive potential of India’s underinsured masses.
The entry of fintech majors like Paytm and PhonePe validates the market’s enormous size and growth opportunities. InsuranceDekho is strategically placed to capitalize on this promise with its distribution model optimized for Bharat.
With the new capital and strategic priorities, InsuranceDekho is gearing up to transform India’s insurance landscape and fulfill its ambitious vision of insurance inclusion at scale.
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