Funding Alert

InsuranceDekho Secures $150M in Debut Funding Round

• ByStartupStory     |    February 14, 2023

InsuranceDekho, owned by Girnar Insurance Brokers, has raised $150 million through a mix of equity and debt round. TVS Capital Funds and Goldman Sachs Asset Management led the Series A equity round, with Investcorp, Avatar Ventures, and LeapFrog Investments also participating.

The company plans to use the funds to expand its product and technology functions, explore new markets, strengthen its leadership team, launch innovative health and life insurance products, and grow its MSME insurance business. In January 2023, the company had already raised $36.5 million, as per filings with the Registrar of Companies.

“Insurance is largely under-penetrated in India and is still at 4.2% of the GDP. Secondly, we have a strong insurance regulator driving growth in the space. There is a lot of room for growth in the space,” said Praveen Sridhar, Partner at TVS Capital Funds.

“InsuranceDekho is an insurance broking firm which works through an agent model—aggregating these agents. The agency or broker model is a larger market than the digital market, and insurance is a push product. The growth anticipated from Tier II and III cities for insurance will play well into the InsuranceDekho model which has a large network of agents,” he added.

The government’s initiative to establish a single platform, Bima Sugam, for various insurance-related services is expected to boost the growth of InsuranceDekho and other intermediaries, as stated by Praveen, a company representative. Currently, InsuranceDekho has direct integration with 46 insurance companies in India and provides over 380 insurance products, including 175 for health and life. By March 2023, the company aims to achieve an annualized premium run rate of Rs 3,500 crore. PolicyBazaar, Turtlemint, and other listed insurance intermediaries are among InsuranceDekho’s competitors.

InsuranceDekho, which was established in 2016 as a component of CarDekho Group’s auto tech platform by Ankit Agrawal and Ish Babbar, enables customers to assess and purchase the most appropriate policy for life, property, and casualty insurance by comparing various insurance policies based on their needs. In 2017, GIBPL, its parent company, was issued a Direct Insurance Broker license by IRDAI.

 

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