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India’s InsuranceDekho Raises Additional Sixty Million Dollars in Funding

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InsuranceDekho Raises $60 Million to Supercharge Growth

Indian Startup Valued at Over $600 Million After Series B Funding Round

InsuranceDekho, the insurance startup incubated within the automobile marketplace group CarDekho, has announced a new funding round of $60 million. The investment was led by Mitsubishi UFJ Financial Group (MUFG), insurer BNP Paribas Cardif, Beams Fintech Fund, and Yogesh Mahansaria Family Office.

Series B Funding Round Valuation

The Series B funding round values InsuranceDekho at over $600 million, marking a significant milestone for the Indian startup. This is the second financing round for InsuranceDekho, which also counts Goldman Sachs and TVS Capital among its backers. The startup raised $150 million in February this year.

Market Opportunity

India’s insurance market remains largely underpenetrated, with a penetration rate below 5% of the GDP compared to 12% in the US. An average Indian earns around $2,100 per year, according to World Bank estimates. ICRA estimates that Indians who have purchased an insurance product spend less than $100.

Expansion Plans

InsuranceDekho is looking to expand into new business lines, including health and life categories, as well as serving small- and medium-sized enterprises (SMEs). The startup has established a presence in about 98% of all zip codes in the country, giving it an opportunity to go deeper as the market matures. It sells more than 80% of its coverage in smaller Indian cities.

Co-founder Ankit Agrawal’s Comments

In an interview with TechCrunch, InsuranceDekho co-founder and CEO Ankit Agrawal said that the startup is on track to sell $432 million worth of premiums in the current financial year. He also stated that the core business is profitable and that the company has years of runway without needing the fresh capital.

Funding Deliberation

Agrawal revealed that the funding deliberation for this round took just four weeks to complete, indicating a high level of interest from investors.

InsuranceDekho’s Business Model

The startup relies on over 150,000 gig economy workers, called "agents," to educate the market and sell insurance coverages. These agents also answer questions that prospective customers have about policies. Scores of firms, including Digit, Policybazaar, Acko, Paytm, and PhonePe, sell insurance products in India.

Insurtech Sector

The arrival of fintech giants in the category is indicative of the market size and opportunity, according to Agrawal. He argued that InsuranceDekho’s entry into the insurtech sector signifies a strategic commitment to increasing insurance accessibility in India.

Investor Comments

Shashank Joshi, Deputy CEO of MUFG Bank in India, said, "Our entry into the insurtech sector signifies a strategic commitment to increase insurance accessibility in India. InsuranceDekho’s tech-driven last-mile distribution model perfectly aligns with our vision of advancing insurance outreach in India."

Conclusion

InsuranceDekho’s new funding round is a testament to the growing interest in the Indian startup ecosystem, particularly in the fintech and insurtech sectors. With its expanded product offerings and geographical reach, InsuranceDekho is well-positioned to capitalize on the market opportunity.

Expansion Plans

  • Health and life categories
  • Serving small- and medium-sized enterprises (SMEs)

Market Opportunity

  • India’s insurance market remains largely underpenetrated
  • Penetration rate below 5% of the GDP compared to 12% in the US
  • Average Indian earns around $2,100 per year
  • ICRA estimates that Indians who have purchased an insurance product spend less than $100

Funding Deliberation

  • Funding deliberation took just four weeks to complete
  • High level of interest from investors

InsuranceDekho’s Business Model

  • Rely on over 150,000 gig economy workers, called "agents"
  • Educate the market and sell insurance coverages
  • Answer questions that prospective customers have about policies

Insurtech Sector

  • Arrival of fintech giants in the category is indicative of the market size and opportunity
  • InsuranceDekho’s entry into the insurtech sector signifies a strategic commitment to increasing insurance accessibility in India