InsuranceDekho, an Indian insurtech startup, has raised $150 million in a Series A funding round, co-led by Goldman Sachs Asset Management and TVS Capital, as it seeks to capitalise on the country's lack of insurance penetration.

India's insurance penetration is below 5% of GDP, compared to 12% in the US. The funds will be used to acquire smaller firms and expand InsuranceDekho's reach to rural areas, according to CEO Ankit Agrawal. The firm is valued at between $475m and $500m, the company said.

InsuranceDekho, which was incubated within the automobile marketplace group CarDekho, has established a presence in 98% of all zip codes in India, selling 80% of all its coverage in small towns.

The firm relies on more than 80,000 gig-economy workers, called agents, to educate the market and sell insurance coverage. The company plans to double the workforce of agents by year-end.

InsuranceDekho also plans to expand into health and life categories and small and medium-sized enterprises. The insurtech industry has proved popular in India, with digitization and the pandemic spurring growth.

The startup’s funding comes at a time when many other firms in the country are struggling to put together new financing as investors grow cautious of the market conditions.