Funding For InsuranceDekho: Company Earns $150 Million in its Largest-ever Series A Financing From an Indian Insurtech Company


Funding For InsuranceDekho: Company Earns $150 Million in its Largest-ever Series A Financing From an Indian Insurtech Company

February 2023: The foremost Insurtech business in India, InsuranceDekho, has raised $150 million in Series A funding, the highest Series A round ever for an Indian Insurtech company.

Leading this round of fundraising, which included a combination of debt and equity, were TVS Capital Funds and Goldman Sachs Asset Management. LeapFrog Investments, Investcorp, and Avataar Ventures also took part in the financing. The sole financial advisor to the fundraising was Haitong Securities India.

The most recent funding will be used to scale up InsuranceDekho’s product and technology functions, expand into new markets, introduce novel health and life insurance products, expand the company’s Micro, Small & Medium Enterprise (MSME) insurance business, fortify its management team, and pursue inorganic growth opportunities.

Ankit Agrawal of InsuranceDekho raises the most money in a Series A round among insurance software companies:

We need to expand the country’s insurance penetration beyond metropolitan areas, according to Ankit Agrawal, CEO and co-founder of InsuranceDekho.

We are extending our reach and will keep developing our tech-based solutions and empowered advisers to ensure that they can serve every town and area of India by the end of the year, helping us to accomplish our aim of democratising insurance for the general population.

InsuranceDekho is perfectly positioned to address every Indian’s insurance needs as India is on the cusp of a revolution in the industry.

InsuranceDekho’s co-founder and CTO, Ish Babbar, stated: “Insurance distribution in India is a complex issue that requires creative solutions.

The money raised will allow us to implement scalable insurtech solutions in data analytics, AI, last mile service, and claims administration while keeping the needs of the client first.

India now has a 4.2% GDP penetration of insurance, compared to 12% in the USA and 7%2 worldwide. Nearly 85%1 of India’s current insurance premium is concentrated in its Tier 1 and metro areas. InsuranceDekho seeks to rectify this.

As part of its goal to make insurance available to everyone worldwide,82% of InsuranceDekho’s premium comes from Tier 2 and higher regions around the nation. 98% of India’s pin codes are covered by its presence in more than 1,300 towns, and it is trying to achieve 100% penetration.

More than 200,000 insurance consultants should be engaged on InsuranceDekho’s platform by the end of this year.

Within six months of working with InsuranceDekho, the majority of insurance advisors see a threefold increase in overall household revenue.

The advisor’s increased income enables them to substantially raise the standard of living for their families.

More than 380 insurance products, including 175 products for health and life, are offered by InsuranceDekho, which collaborates with the majority of insurance providers and has direct integration with 46 insurance companies in India. In the near future, InsuranceDekho plans to add more products to its portfolio.

The company has had considerable premium growth since its beginning and hopes to reach a yearly premium run-rate of Rs 3,500 crores by March 2023.

“Celebrating the spirit of entrepreneurship and thriving on the robust value system, CarDekho Group has promoted the culture of being a House of Founders” said Amit Jain, CEO and Co-Founder of the CarDekho Group. “These businesses have been propelled to the orbit of sustainable growth with profitability.”

“Technological innovation is altering the Indian insurance market by making coverage more accessible and inexpensive,” said Rajat Sood, Managing Director at Goldman Sachs Asset Management.

By equipping them with technology-based solutions and collaborating closely with insurers, InsuranceDekho has proven its capacity to attract new channel partners to their platform.

“Though insurance is essential for everyone’s financial security, its penetration is still at 4.2% of Indian GDP compared to global overage of 7.4%,” stated Praveen Sridharan, Partner, TVS Capital Funds.

Accessing the next 400 million people—the middle and lower middle income class—who reside in India’s next 1000 towns is the key to solving this problem.

With its agency model and digital DNA, InsuranceDekho provides a potent mechanism for this penetration to increase.

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