Coverfox’s Operating Revenue Falls 26% To INR 13 Cr In FY22

Insurtech startup Coverfox reported a 26% year-on-year (YoY) decline in its operating revenue to INR 13 Cr in the financial year 2021-22 (FY22), indicating that the business remained under pressure during the year. 

Coverfox’s operating revenue, which comes from sales of services, stood at INR 17.6 Cr in FY21, as per the startup’s regulatory filing.

The dwindling top line also hurt Coverfox’s bottom line, but the startup managed to narrow its net loss in FY22 by reducing its expenses. Coverfox reported a net loss of INR 5 Cr in FY22 as against INR 12.9 Cr in the prior fiscal year, a decline of 61%. 

Coverfox’s total expenses in FY22 declined 40% to INR 18.4 Cr from INR 30.7 Cr in FY21. Employee benefit expenses, which constitute the largest portion of its total expenses, fell to INR 13.5 Cr in FY22 from INR 21.8 Cr in the prior fiscal year.

On the other hand, the startup’s insurance expenses fell 8.3% to 11 Lakh in FY22 from 12 Lakh in FY21. Its other expenses also declined over 45% to INR 4.5 Cr in FY22 from INR 8.3 Cr in the previous year.

However, the Mumbai-based insurance aggregator’s payment to the auditors increased marginally to INR 12 Lakh from INR 11.6 Lakh in FY21.

Founded in 2013 by Devendra Rane and Varun Dua, Coverfox offers a proprietary technology and algorithm-based platform to compare and buy a range of policies in health insurance, life insurance, motor vehicle insurance, and other segments, from top insurance providers in the country.

The startup saw upheaval in 2020 with the exit of its founders and managerial changes. Later, it received INR 30 Cr of fresh funds from its parent entity Glitterbug Technologies in April 2020.

Earlier this year, Avaana Capital cofounder Sanjib Kumar Jha, who is currently heading Coverfox after the founders’ exit, said that the startup was regaining its revenue momentum and was aggressively slashing its cash burn rate. He is reportedly aiming to triple the startup’s revenue in FY23.

Coverfox is backed by investing firms like SAIF Partners, Transamerica, Accel India, among others. It competes with the likes of listed startup Policybazaar and IPO-bound Digit Insurance. 

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