The funding round was spearheaded by Japan’s Mitsubishi UFJ Financial Group (MUFG), with notable participation from BNP Paribas Cardif, Beams Fintech Fund, and the Yogesh Mahansaria Family Office.
This injection of capital has elevated the valuation of InsuranceDekho, the insurance arm of the renowned used-car platform CarDekho, to a staggering $600 million.
A knowledgeable source close to the transaction revealed that the funding will primarily be directed towards bolstering technological capabilities, amplifying marketing endeavors, and financing innovative initiatives such as reinsurance. Additionally, the company aims to pursue inorganic growth plans as part of its strategic expansion.
While a significant portion of the funds raised is in the form of equity, the company disclosed that a smaller portion was secured through debt. Prominent existing investors, including TVS Capital, Goldman Sachs Asset Management, and Avataar Ventures, have also actively participated in this funding round.
InsuranceDekho, founded in 2017 by Ankit Agrawal and Ish Babbar, has demonstrated robust growth in the insurtech landscape. The company is on track to achieve a premium target of INR₹3,600 crore for the current financial year (FY24) and envisions further growth to INR₹6,000 crore over the next 12 months, as outlined by Ankit Agrawal, the co-founder and CEO of InsuranceDekho.
With a focus on Tier-II cities and beyond, the company distinguishes itself in a competitive landscape that includes industry players such as Acko, Turtlemint, and PolicyBazaar. InsuranceDekho asserts its presence in over 1,500 towns, with more than 90% of its premium originating from tier-II regions and beyond.
Boasting a customer base exceeding 6 million, InsuranceDekho has established direct integrations with 46 insurance companies in India, offering a comprehensive portfolio of over 380 insurance products, including 175 products for health and life coverage. Ankit Agrawal noted that the company achieved profitability in the quarter ending June 2023 and is poised to attain full-year profitability for FY24. This latest funding round positions InsuranceDekho strategically for its ambitious growth trajectory in the dynamic insurtech sector.
“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.
Matthieu Baret, managing partner – venture at Eurazeo, added: “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.”
Author: Joanna England
