InsuranceDekho Gears Up: Securing $50 Million Investment at Valuation Surpassing $500 Million

InsuranceDekho Gears Up: Securing $50 Million Investment at Valuation Surpassing $500 Million

InsuranceDekho, an insurtech company based in Gurugram, is reportedly engaged in discussions to secure a new round of funding from both new and existing investors. This development has been disclosed by sources familiar with the matter. If successful, this round of funding would mark the second instance of investment for the startup within the year 2023.

The insurtech sector, which aims to leverage technology and innovation to transform the insurance industry, has been gaining significant attention and investment in recent years. InsuranceDekho’s potential funding round reflects the continued interest in this sector and highlights the company’s growth and appeal to investors. As the company seeks further financial support, it signifies its aspirations to expand and enhance its offerings within the insurtech landscape.

According to an anonymous source, InsuranceDekho is reportedly securing approximately $50 million in its Series B funding round. This funding is anticipated to come from a pair of new investors. Furthermore, existing investors such as Goldman Sachs and TVS Capital are expected to increase their investment in the company as well, underscoring their continued support and confidence in the insurtech startup’s growth trajectory.

This Series B funding round, with the participation of both new and existing investors, signifies the ongoing interest and belief in InsuranceDekho’s business model and potential within the insurtech sector. The substantial amount being raised indicates the company’s ambition to further develop its services and expand its market presence in the evolving landscape of insurance technology.

In February, InsuranceDekho successfully secured a remarkable $150 million in what stands as one of the most substantial Series A funding rounds accomplished within the insurtech sector. The funding was led by prominent backers, including Goldman Sachs Asset Management, TVS Capital Funds, Investcorp, Avataar Ventures, and LeapFrog Investments. Their collective support played a pivotal role in propelling the company forward and validating its business model.

This impressive Series A funding round served as a testament to the potential and viability of InsuranceDekho’s approach within the insurance technology landscape. The substantial investment not only enabled the company to expand its operations but also showcased the growing recognition of insurtech as a disruptive force capable of reshaping the insurance industry by leveraging advanced technologies and innovative strategies.

According to another source with knowledge of the situation, a term sheet has been formally agreed upon, and the completion of the deal is anticipated within the next few weeks. In this funding round, InsuranceDekho is expected to achieve a valuation of approximately $500 million. This valuation underscores the considerable confidence and interest from investors in the company’s growth prospects and its position within the insurtech sector.

As negotiations and details remain confidential, this funding round is poised to play a pivotal role in shaping the trajectory of InsuranceDekho’s future endeavors. The projected valuation reflects the recognition of the company’s achievements and potential impact in revolutionizing the insurance industry through technology-driven innovation and services.

InsuranceDekho was co-founded by Ankit Agrawal and Ish Babbar. The company has established collaborations with a vast majority of insurance providers in India. Notably, InsuranceDekho boasts direct integration with nearly 50 insurance companies in the country. This integration facilitates the offering of an extensive array of insurance products, comprising over 400 options encompassing health and life insurance categories.

By establishing these partnerships and direct integrations, InsuranceDekho has positioned itself as a comprehensive platform that provides individuals with a wide range of insurance choices to cater to their specific needs. The company’s focus on collaboration and technology-driven solutions highlights its commitment to simplifying the insurance purchasing process and enhancing customer access to a diverse set of insurance offerings.

InsuranceDekho has chosen not to provide comments on the matter at this time. Similarly, inquiries directed towards Goldman Sachs and TVS Capital have not yielded an immediate response. Any updates or further information received from these parties will be incorporated into the post to provide a comprehensive and accurate understanding of the situation. The decision to withhold comments suggests the sensitivity and confidentiality surrounding ongoing discussions and negotiations related to the funding round.

In addition to its ongoing fundraising efforts, InsuranceDekho has also been active in expanding its operations through strategic acquisitions. In April, the company completed two significant acquisitions. The first acquisition involved Verak, a Mumbai-based firm specializing in SME insurance distribution. This move aligned with InsuranceDekho’s goal of broadening its reach and enhancing its offerings in the small and medium-sized enterprise insurance sector.

Subsequently, InsuranceDekho acquired IRSS, an institutional insurance distributor located in Gujarat. This acquisition further expanded the company’s presence and capabilities within the insurance distribution landscape. These strategic acquisitions reflect InsuranceDekho’s intent to strengthen its position and expertise across different segments of the insurance market, ultimately enabling them to offer a comprehensive suite of services to a diverse range of customers.

InsuranceDekho’s co-founder, Ankit Agrawal, has expressed the company’s strategic goals for the coming years. He stated that the firm is aiming to achieve profitability by the fiscal year 2023-24, along with a target of doubling its revenue within the same time frame. Although specific figures for the fiscal year 2022-23 were not disclosed, InsuranceDekho concluded the previous fiscal year with an annualized premium run rate of Rs 3,000 crore.

In the fiscal year 2021-22, the company showcased substantial growth, with its revenue surging by 61% to reach Rs 47.91 crore compared to Rs 29.71 crore in the previous fiscal year. However, this growth was accompanied by a 55.6% increase in losses, which rose to Rs 72.29 crore during the same period. These figures provide insight into the company’s financial trajectory, indicating a balance between scaling up its operations and managing its profitability as it navigates the competitive insurtech landscape.