InsuranceDekho Raises $60M in Series B Funding to Accelerate Expansion in the Indian Insurance Landscape
- ByStartupStory | October 11, 2023
InsuranceDekho, a dynamic insurtech startup, announced a significant milestone on October 11 by securing $60 million in an ongoing Series B funding round, comprising a mix of equity and debt. The round was backed by prominent investors, including Mitsubishi UFJ Financial Group, BNP Paribas Cardif’s insurtech fund managed by Eurazeo, Beams Fintech Fund, and the Yogesh Mahansaria Family Office.
This development comes just a few months after the company’s impressive $150 million Series A round in February. While exact valuation figures are not officially disclosed, reliable sources suggest that the new round is poised to value InsuranceDekho at over $500 million.
Notably, existing investors TVS Capital, Goldman Sachs Asset Management, and Avataar Ventures participated once again in this funding round, indicating continued confidence in the startup’s growth potential.
Ankit Agrawal, the founder and CEO of InsuranceDekho, shared, “The funding round is still in progress, and it could become bigger. We haven’t decided on the exact size of the Series B round yet, but we’ve seen a lot more interest and demand from investors than we originally expected – about two to three times more.”
The freshly raised capital will be allocated to accelerate marketing efforts, expand distribution presence in India’s hinterlands, scale up the tech platform, explore inorganic growth opportunities, and launch new initiatives like Reinsurance. This strategic funding aims to advance the company’s mission to democratize and revolutionize the insurance landscape in India.
To realize its expansion strategy into India’s hinterlands, InsuranceDekho has been actively acquiring other players, including Mumbai-based SME-focused insurance distributor Verak and IRSS, one of Gujarat state’s largest institutional insurance distributors, in April 2023.
Agrawal expressed his vision, saying, “Our aim has always been to make insurance accessible and user-friendly for all Indians, and this funding will allow us to accelerate our efforts, reach more customers, and innovate further in the Insurtech space. The insurance sector in India is at the cusp of a tech-backed revolution, and I believe InsuranceDekho is well positioned as one of the pioneers leading this transformation.”
Founded by Agrawal and Ish Babbar in 2017, InsuranceDekho has demonstrated substantial growth and is on track to achieve a premium of Rs 3,600 crores this financial year. The company aims to have 200,000 agent partners on its platform by March 2024. Presently, InsuranceDekho operates in over 1,500 regions, covering 98 percent of pin codes across India. It garners more than 90 percent of premiums from tier 2 and beyond regions and has served over six million customers to date.
InsuranceDekho operates as the insurance arm of CarDekho, a well-known car-selling unicorn. Agrawal confirmed their commitment to continued growth, stating, “We will continue to grow 2x YoY as we have been doing for the past few years. We aim to grow our non-motor businesses like MSME, launch new product categories, and get into the Reinsurance broking business.”
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In terms of growth strategy, Agarwal emphasized that Merger & Acquisition (M&A) plays a pivotal role. “We continue to explore inorganic opportunities in various areas like new product categories, geographical expansion, emerging and niche technologies, etc. Currently, we’re evaluating our strategic options and are open to opportunities that will help us grow our company,” he added.
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