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Walmart-backed fintech major PhonePe has partnered with a clutch of insurers to roll out a new vehicle insurance plan for two-wheelers and four-wheelers
The initiative aims to offer cost-effective online alternatives for all new vehicle buyers as compared to conventional dealership insurance plans
Besides vehicle, PhonePe’s insurance portfolio offerings include life, health and travel
Doubling down on its insurance offerings, Walmart-backed fintech major PhonePe
has partnered with a clutch of insurers to roll out a new vehicle insurance plan for two-wheelers and four-wheelers.
The initiative aims to offer cost-effective online alternatives for all new vehicle buyers as compared to conventional dealership insurance plans.
“With this launch, users can now compare policies from multiple insurers and make the purchase online on the PhonePe app,” the company said in a statement.
Besides vehicle, PhonePe’s insurance portfolio offerings include life, health and travel. The company secured insurance broking license from the Insurance Regulatory and Development Authority of India (IRDAI) in 2021.
“At PhonePe, our goal is to simplify insurance-buying and make the process transparent and hassle-free for users. With this launch, we hope to transform the way consumers purchase insurance for their new vehicles,” said Vishal Gupta, CEO at PhonePe Insurance Broking Services.
What’s In The New Offering?: PhonePe’s vehicle insurance claims to enable savings of up to INR 4,000 on two-wheeler insurance and up to INR 40,000 on four-wheeler insurance as compared to dealership prices.
The company says that it offers the lowest price on two-wheeler insurance with “own damage cover” starting at INR 1. Users can check and compare plans from top insurers on the PhonePe app and further customise preferred policy by selecting suitable add-ons.
PhonePe’s Expansion Beyond Fintech Platform Amid IPO Plans: Bengaluru-based PhonePe has announced its plans to launch an initial public offering (IPO) last month and also said that it is commencing preparatory steps for the same.
While making the announcement, PhonePe said that this is a suitable time for the company to go public, citing its strong top line and bottom line growth in the fiscal year 2023-24.
In August last year, the startup said it posted an adjusted profit after tax (PAT) of INR 197 Cr in the financial year 2023-24 (FY24) as against an adjusted loss after tax of INR 738 Cr in the previous fiscal year. PhonePe claimed that it turned profitable before ESOP costs during the financial year ended March 31, 2024.
Ahead of its IPO, the company has forayed in insurance broking, wealth broking, digital commerce, account aggregator business services, appstore and others. It has adopted a startup-within-a-startup approach for its various products.
Some of the new verticals PhonePe entered into like digital commerce or the app store are not essentially fintech businesses or its strengths, however it may help the company in its revenue growth.
Founded in 2015 by Sameer Nigam, Burzin Engineer and Rahul Chari, PhonePe is one of India’s leading fintech companies and UPI platforms. It held an over 48% market share in the UPI market as of January 2025, far ahead of rivals Google Pay and Paytm.
Meanwhile, the Indian insurance market is projected to reach a market size of $228.67 Bn in 2025 with an annual growth rate (CAGR) of 4.85%, as per market research platform Statista.
