InsuranceDekho, a prominent insurtech startup, has raised fresh funding as it inches closer to its IPO, anticipated later this year. The company expects to finalize its banker appointments within the next month, setting the stage for its public listing.
Key Funding Details
The startup recently raised INR 121.9 crore from investors including Beams Fintech Fund, MUFG Bank, and C. Development, a BNP Paribas Cardif associate. This forms part of a larger capital-raising effort that may total USD 75-100 million (~INR 865 crore).
Filings with the Ministry of Corporate Affairs indicate investors acquired 4.33 million shares in this round. Existing backers are likely to participate in subsequent stages of funding, with proceeds allocated towards tech upgrades, marketing, and reinsurance ventures.
“This is expected to be their last fundraise before the IPO,” noted a source close to the matter.
Expanding Influence in Insurtech
Founded in 2017 by Ankit Agrawal and Ish Babbar, InsuranceDekho has built a strong foothold in India’s insurance market, with Tier-II cities and rural areas contributing 82% of its premium income. The company, serving over 6 million customers, partners directly with 46 insurers to offer a diverse product portfolio.
A subsidiary of CarDekho, the company benefits from the parent firm’s expertise and market presence. CarDekho, a unicorn since 2021, diversified into vehicle financing and expanded further with the acquisition of Revv in 2023.
Robust Financial Growth
InsuranceDekho’s financial trajectory has been impressive. Operating revenue surged from INR 96.5 crore in FY23 to INR 743.6 crore in FY24, marking a 670% growth. The company also reversed a loss of INR 51.6 crore in FY23 to post a profit of INR 85.7 crore in FY24.
Prior Fundraising Milestones
The company has consistently attracted investor interest. In October 2023, it raised USD 60 million in a Series B round led by MUFG Bank, BNP Paribas Cardif, and others. Earlier, a USD 150 million Series A round in February 2023, spearheaded by Goldman Sachs Asset Management and TVS Capital Funds, valued the company at USD 600 million.
These funds have bolstered InsuranceDekho’s technological capabilities, marketing efforts, and reinsurance initiatives. Talks of a merger with RenewBuy, if finalized, could create India’s second-largest insurance aggregator.
Strategic Vision and IPO Plans
CEO Ankit Agrawal remains focused on scaling operations sustainably. “We are profitable at a company level. The funds raised will help us innovate and expand our reach,” he said. The company projects a premium income of INR 3,600 crore for FY24, targeting INR 6,000 crore over the next year.
InsuranceDekho IPO marks a pivotal milestone in its journey, with investors reaffirming confidence in its scalable model. Shashank Joshi of MUFG Bank emphasized, “InsuranceDekho’s tech-driven distribution aligns with our vision of advancing insurance access in India.”
Outlook
With a solid foundation, impressive financial performance, and the backing of prominent investors, InsuranceDekho is well-positioned to navigate its path to a successful IPO. As the company continues to innovate and expand its reach, it is set to play a pivotal role in shaping the future of India’s insurtech landscape.
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This article is based on information sourced from Livemint.