In a significant move poised to reshape the landscape of India’s burgeoning insurtech industry, InsuranceDekho, a Gurugram-based startup, has successfully raised a staggering $60 million in its ongoing Series B funding round. The infusion of capital, which consists of equity and debt, marks a pivotal moment in the company’s journey and is set to catalyze its ambitious growth plans. The funding round saw participation from a diverse group of investors, including Mitsubishi UFJ Financial Group (MUFG), BNP Paribas Cardif through its insurtech fund managed by Eurazeo, and Beams Fintech Fund, alongside returning backers such as TVS Capital, Goldman Sachs Asset Management, and Avataar Ventures.
Earlier in the year, the company secured a massive $150 million in one of the largest Series A funding rounds ever completed by an insurtech firm. This extraordinary achievement makes InsuranceDekho one of the few startups to attract substantial Series A and B investments within the same year, underlining its exceptional growth trajectory and the industry’s confidence in its potential.
InsuranceDekho has big plans for the fresh capital infusion. According to a statement released by the company, the funds will be used to supercharge its marketing activities, extend its distribution network across India, enhance its technological infrastructure, and explore opportunities for inorganic growth. This strategic deployment of funds is set to propel the company’s mission to democratize insurance access and drive innovation in the sector.
At its core, InsuranceDekho offers a platform that empowers users to compare and purchase third-party insurance policies for various needs, ranging from vehicles to health and life coverage. The firm generates revenue from brokerage fees paid by insurance providers, making it a vital intermediary that simplifies and streamlines the insurance-buying process for millions of users.
The company’s track record and market penetration are indeed impressive. As a six-year-old startup, InsuranceDekho has successfully established partnerships with most insurance providers, boasting direct integration with nearly 50 insurance companies. The company’s revenue witnessed a remarkable twofold increase in financial performance, climbing from Rs 47.9 crore in FY22 to Rs 96.5 crore in FY23. This growth was significantly aided by prudent cost management, leading to a 28.6% reduction in losses, which fell to Rs 51.6 crore in the last fiscal year.
With its sights set on the future, InsuranceDekho has set ambitious targets. The company has expressed confidence in achieving a premium collection of Rs 3,600 crore in the current financial year and aims to onboard 200,000 agent partners on its platform by March 2024. Currently, InsuranceDekho has a presence in more than 1,500 regions, covering 98% of pin codes across India, and interestingly, it derives over 90% of its premiums from tier II and beyond areas. The company prides itself on its ability to serve over 6 million customers, highlighting its significant impact on India’s insurtech ecosystem.
The success of InsuranceDekho in securing $60 million in Series B funding underscores the growing potential of insurtech in India. It positions the company as a frontrunner in transforming how individuals and businesses approach insurance. With the promise of accessible and innovative insurance solutions, InsuranceDekho is undoubtedly a rising star in the Indian insurtech arena, poised for even more outstanding achievements in the years to come.
