Indian insurtech startup InsuranceDekho is positioning itself to increase insurance accessibility in India using technology, thanks to its latest funding round.
The Gurugram-based startup marked its second major raise in 2023, securing $60 million in an equity and debt Series B funding round which brings its total fundraising to an impressive sum of $200 million.
Founded in 2017 by Agrawal and Ish Babbar, InsuranceDekho allows users to compare and purchase third-party insurance policies for vehicles, health, life, and more, with revenue primarily coming from brokerage fees paid by insurance providers.
The seven-year-old startup claims to have direct integration with nearly 50 insurance companies and has served more than 6 million customers to date. It currently operates in over 1,500 regions, covering 98% of postal codes across India, and garners over 90% of premiums from tier II and beyond regions.
The company has also achieved substantial growth, doubling its revenue of $5.76 million in FY22 to $11.6 million in FY23 and losses decreasing by 28.6% to $6.21 million in the last fiscal year. InsuranceDekho aims to achieve approximately $430 million in premiums in the current financial year and expand its agent partner network to 200,000 by March 2024.
In February 2023, the startup raised $150 million in one of the largest Series A funding by an insurtech company, placing it among the select few startups capable of securing substantial Series A and B funding within the same year.
According to the insurtech, the newly acquired funds are earmarked for strengthening marketing efforts, expanding distribution across India, enhancing the tech platform, and exploring inorganic growth opportunities.
Mitsubishi UFJ Financial Group (MUFG), BNP Paribas Cardif through its insurtech fund managed by Eurazeo, and Beams Fintech Fund are the prominent names behind this financial infusion. Existing investors TVS Capital, Goldman Sachs Asset Management and Avataar Ventures also participated in the round.