InsuranceDekho will use the funds to expand its product and technology functions, enter new markets, pursue inorganic growth
Introduction
InsuranceDekho, an Indian insurance broking firm backed by Girnar Insurance Brokers, has raised $150 million in a mix of equity and debt in its maiden funding round. The round was led by TVS Capital Fund and Goldman Sachs Asset Management, with participation from Investcorp, Avatar Ventures, and LeapFrog Investments. InsuranceDekho will use the funds to expand its product and technology functions, enter new markets, pursue inorganic growth, strengthen its leadership team, and launch new innovative products in the health and life categories.
Funding Details
Founded in 2016 as part of the auto tech platform CarDekho Group, InsuranceDekho enables consumers to compare and purchase different insurance policies based on their requirements. Its holding entity GIBPL was granted the Direct Insurance Broker license by IRDAI in 2017. InsuranceDekho claims to be directly integrated with 46 insurance companies across India, offering more than 380 insurance products, including 175 for health and life. The company plans to reach an annualized premium run rate of Rs 3,500 crore by March 2023.
Growing Insurance
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,” Praveen Sridhar, Partner at TVS Capital Funds
Funding Strategy
The funding round marks the 10th investment from TVS Capital Fund’s Rs 2,000 crore third private equity fund, which already backs Go Digit General Insurance and will continue to back insurtech companies as part of its investment thesis. InsuranceDekho’s agency or broker model is a larger market than the digital market, and insurance is a push product, making it well-positioned to benefit from growth anticipated from Tier II and III cities for insurance, said Praveen Sridhar, partner at TVS Capital Funds.
Competition in the Market
The under-penetrated Indian insurance market, still at 4.2% of GDP, provides a significant growth opportunity, and intermediaries like InsuranceDekho are expected to benefit from the government’s push towards creating a single platform for multiple insurance-related services. InsuranceDekho competes with listed insurance intermediaries PolicyBazaar, Jungle Ventures backed Turtlemint, and others.
Utilization of Funds
The $150 million funding round is a significant milestone for InsuranceDekho and will enable the company to expand its business and reach more consumers. The under-penetrated Indian insurance market presents a vast growth opportunity, and intermediaries like InsuranceDekho are well-positioned to benefit from the government’s initiatives to increase insurance penetration. With this funding, InsuranceDekho is expected to continue its growth trajectory and become a significant player in the Indian insurance market.
