Insurtech startup InsuranceDekho raises $60M in a Series B round

Insurtech startup InsuranceDekho has raised $60 million or nearly Rs 500 crore in a Series B funding round.

While the company didn't reveal the current valuation, a Livemint report, citing sources, claimed that the current round values InsuranceDekho at $600 million, positioning it as a potential soonicorn.

Who are the investors?

The round was led by Japan-based Mitsubishi UFJ Financial Group (MUFG); insurer BNP Paribas Cardif through its insurtech fund managed by European investment major Eurazeo; Beams Fintech Fund; and Yogesh Mahansaria Family Office.

Existing backers TVS Capital, Goldman Sachs Asset Management and Avataar Ventures also participated in the round.

What are InsuranceDekho's intentions with this funding?

According to the company, the raised capital would enhance its technology, boost marketing, fund new initiatives like reinsurance, and explore inorganic growth opportunities.

The current round, which is in a mix of debt and equity, comes almost eight months after it raised $150 million in a Series A round, which was also in a mix of debt and equity, from TVS Capital, Goldman Sachs Asset Management, Investcorp, Avataar Ventures, and LeapFrog Investments.

What are the offerings of InsuranceDekho?

Founded in 2016 by Ankit Agrawal and Ish Babbar, InsuranceDekho initially started as a platform to help customers buy motor and health insurance. The platform allows consumers to compare different insurance policies and choose the most suitable plan

The insurtech startup, which competes with firms like Acko, Turtlemint, and PolicyBazaar, primarily earns from Tier-II cities, contributing about 82% of its premium.

It claims to have a presence in around 1,500 towns and a customer base of more than 6 million. Notably, InsuranceDekho works directly with 46 Indian insurance companies, offering over 380 products.

Aiming to generate Rs 3,600Cr in premiums

According to Agrawal, InsuranceDekho was profitable in the quarter ending June 2023 and is on track for profitability in FY24, with a major focus on unit economics.

He said the new funding will enhance the company's outreach and innovation efforts.

For the current financial year (FY24), InsuranceDekho aims to generate around Rs 3,600 crore in premiums and anticipates growing to Rs 6,000 crore over the following 12 months, according to Agrawal.

“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," said Matthieu Baret, managing partner – venture at Eurazeo.

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