In the Series B round, InsuranceDekho was valued at $600 million

 In the Series B round, InsuranceDekho was valued at $600 million

MUMBAI: On Tuesday, InsuranceDekho, an insurtech startup, announced that it had secured $60 million in a Series B funding round, led by Japan's Mitsubishi UFJ Financial Group (MUFG), with participation from the European investment powerhouse Eurazeo, BNP Paribas Cardif, Beams Fintech Fund, and Yogesh Mahansaria Family Office.

According to a source with knowledge of the deal, the investment valued the business, the insurance division of used-car marketplace CarDekho, at around $600 million.

The investment round is mostly made up of shares, although there is also some loan capital, according to the business. The most recent fundraising round included investments from InsuranceDekho's current investors, TVS Capital, Goldman Sachs Asset Management, and Avataar Ventures.

The money will be used to improve marketing activities, finance new projects like reinsurance, and explore inorganic development strategies.

As part of its Series A round of fundraising in February of this year, the firm secured $150 million from investors headed by US-based Goldman Sachs Asset Management and TVS Capital Funds. Other investors that support it include Investcorp, Avataar Ventures, and LeapFrog Investments.

Ankit Agrawal, co-founder and CEO of InsuranceDekho, said that the company, which he and Ish Babbar founded in 2017, aims to collect over 3,600 crore in premium revenue for the current fiscal year (FY24) and anticipates expanding to 6,000 crore during the next 12 months.

Around 82% of the company's premium comes from Tier-II and above cities. It competes with companies like Acko, Turtlemint, and PolicyBazaar and claims to be present in 1,500 towns. More than 90% of its premium is reportedly generated from tier-II and above locations.

According to the business, there are more than 6 million consumers. It offers approximately 380 insurance products, including 175 health and life insurance options, and has direct connection with 46 insurance providers in India. Agrawal claims that the business generated profits for the three months ending in June 2023 and anticipates full-year profitability for FY 24.

"Unit economics is where we want to focus. We are profitable as a firm," he remarked. According to Agrawal, "this funding will enable us to scale up our efforts, reach more customers, and innovate even more."

"We have made a strategic commitment to enhancing insurance accessibility in India by entering the Insurtech space. According to Shashank Joshi, deputy CEO of MUFG Bank India, "InsuranceDekho's tech-driven last-mile distribution approach fully matches with our aim of improving insurance outreach in India.

"We are happy to engage in InsuranceDekho with the insurance company BNP Paribas Cardif as our first venture into India. We are expanding our presence with the goal of becoming a major player in Asia after our investments in China, Indonesia, and Singapore, according to Matthieu Baret, managing partner - venture at Eurazeo.