InsuranceDekho In Final Talks To Pick Up Majority Stake In BankSathi: Report

CarDekho’s insurance arm InsuranceDekho is reportedly in the last leg of discussions to acquire a majority stake in Bengaluru-based wealthtech startup BankSathi.

As per ET’s report, the buyout will help InsuranceDekho to build capabilities around selling credit products too.

With this deal, expected to be a share swap, BankSathi shareholders will receive a stake in InsuranceDekho.

Citing sources close to the company, the report said, “It will be a majority deal and BankSathi will in all likelihood continue to operate as an independent entity focusing on distributing consumer credit products.”

If implemented this acquisition will mark InsuranceDekho’s third acquisition, following its last two buyouts, which include Gujarat-based insurance distributor IRSS and insurance broker Verak.

InsuranceDekho has declined to comment on Inc42’s queries pertaining to the development.

Founded in 2021, BankSathi is an agent-based platform for distributing financial products. It helps digital sales agents (DSAs) and financial advisors to sell credit and savings products, mainly focusing on credit cards and personal loans.

BankSathi has raised a total funding of $4.2 Mn so far, according to Crunchbase.

The company posted an operating revenue of INR 38 Cr in FY23, a 192% jump from INR 13 Cr in the previous fiscal year.

BankSathi counts Kotak Securities, Lets Venture and QED Innovation Labs among its investors. Apart from this, it is backed by angel investors like Cred founder Kunal Shah, Zerodha founder Nithin Kamath, and Unacademy CEO Gaurav Munjal, and Ritesh Makil among others.

Founded by Ankit Agrawal and Ish Babbar in 2017 as the insurance arm of online car marketplace CarDekho, InsuranceDekho received $20 Mn from its parent firm Girnar Software in 2020. Later, it was hived off to function as a separate unit.

In October last year, InsuranceDekho raised $60 Mn in its ongoing Series B funding round. 

The round, a mix of debt and equity, saw participation from Japanese giant Mitsubishi UFJ Financial Group, Inc. (“MUFG”), insurer BNP Paribas Cardif, through its insurtech fund managed by European investment major Eurazeo, India’s Beams Fintech Fund and Yogesh Mahansaria Family Office. 

In the same year, it also raised $150 Mn in its Series A funding round at a valuation of over $500 Mn.

Its investors include TVS Capital, Goldman Sachs Asset Management, and Avataar Ventures among Others. To date, it claims to have served over 50 Lakh customers, as per its website. It provides sector insurance including health insurance, car/bike insurance, life insurance, and term insurance among others.

It competes against the likes of Policybazaar and Turtlemint.

It is pertinent to note that InsuranceDekho recorded a surge in operating revenue to INR 96.4 Cr in FY23 from INR 47.9 Cr in FY22, while net loss declined 29% to INR 51.5 Cr from INR 72.2 Cr in the preceding fiscal year on robust business growth.