InsuranceDekho Raises $150 Mn Funding From Goldman Sachs, TVS Capital Funds, Others

Update| February 14, 2023, 6:00 AM

InsuranceDekho has raised $150 Mn in a Series A funding round, which was a mix of equity and debt. The $150 Mn round included $36.5 Mn funding that it raised earlier this year. 

The equity round was led by Goldman Sachs Asset Management and TVS Capital Funds, and also saw participation from Investcorp, Avataar Ventures and LeapFrog Investments, InsuranceDekho said in a statement. However, the startup didn’t provide the details of the debt round. 

InsuranceDekho will use the fresh capital to scale product offerings, expand in new markets, grow its MSME-focussed insurance business, and increase its leadership team as well as inorganic growth opportunities.

The startup said it is eyeing an annualised premium run rate of INR 3,500 Cr by March 2023.

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Automobile marketplace unicorn CarDekho’s insurance arm InsuranceDekho has reportedly secured $36.5 Mn (INR300 Cr) led by West Street Global, an investment arm of Goldman Sachs. 

TVS Capital Fund, Investcorp Private Equity, Avataar Ventures, and Alstroemeria Investments took part in the funding round. Besides, individual investors including Vineet Dhingra, N Laxmi Narayan and Shridham sons, among others were too part of the funding round.

In a special resolution, InsuranceDekho has allotted 1,49,16,506 equity shares at an issuance price of INR 201.12 apiece to investors.

It is prudent to note that it is the first external funding round of InsuranceDekho. Prior to this, the startup only raised money via internal funding.

West Street Global and TVS Capital infused INR 153.5 Cr and INR 72.35 Cr respectively in the funding round. Meanwhile, Investcorp Private Equity, Avataar Ventures, Alstroemeria Investments, and other individual investors have collectively invested INR 74.15 Cr in the round. 

The development comes almost six months after InsuranceDekho sealed a funding deal worth $100 Mn. 

Founded by Ankit Agrawal, InsuranceDekho is an insurance aggregator that allows customers to compare insurance quotes of various insurance providers and accordingly shortlist a policy that meets their needs. 

InsuranceDekho offers a range of insurance schemes including health, car, life, pet and travel insurance, among others. It also claims to have issued insurance claims of over INR 20 Lakh to date, according to the website.

In the financial year 2022, the startup’s revenue climbed by 61% to INR 47.91 Cr. Meanwhile, its losses plunged by 55.6% to INR 72.29 Cr in FY22. 

Earlier, in an internal funding round, its parent company GirnarSoft infused $20 Mn in the startup. 

In India, it competes with the likes of Amazon-backed Acko, Policybazaar.com and Toffee Insurance, among others.

According to an Inc42 report, India’s fintech market is anticipated to grow $1.3 Tn by 2025. Of this, insurtech as a subsegment was estimated to grow at a CAGR of 57% to become $339 Bn space by the forecasted period.