According to two sources aware of the development, insurtech company InsuranceDekho is in discussions to raise a new round of funding from both new and existing investors. This will be the startup’s second funding round in 2023, with headquarters in Gurugram.
“InsuranceDekho is picking up around $50 million in Series B from a couple of new investors. Existing backers Goldman Sachs and TVS Capital will double down their commitment,” said one of the sources requesting anonymity.
One of the largest Series A fundings by an insurtech company, $150 million was raised by InsuranceDekho in February. The company’s principal backers included Goldman Sachs Asset Management, TVS Capital Funds, Investcorp, Avataar Ventures, and LeapFrog Investments.
“The term sheet has been signed and the deal is expected to materialize in a couple of weeks. InsuranceDekho is set to be valued at around $500-550 million in this round,” said another source who also requested anonymity as talks are private.
In 2019, car aggregator CarDekho introduced InsuranceDekho. Ankit Agrawal and Ish Babbar, the company’s co-founders, claim to have direct integration with nearly 50 insurance companies across India, which provide more than 400 insurance products for life and health. The company works with the majority of insurance companies.
InsuranceDekho opted for not to comment on the news. TVS Capital and Goldman Sachs did not immediately respond to requests for information. If we hear from them, we’ll update the post.
Along with raising money, InsuranceDekho acquired a few startups in April. Verak, a SME insurance distributor with offices in Mumbai, was bought first, and then IRSS, an institutional insurance distributor with offices in Gujarat.
According to Agrawal’s most recent statements, the company hopes to become profitable by FY24 and double its sales during that time. The business did not provide FY23 financial information, but it ended the previous fiscal year with an annualized premium run rate of Rs 3,000 crore. From Rs 29.71 crore in FY21 to Rs 47.91 crore in FY22, InsuranceDekho’s revenue increased by 61%. The company’s losses during that time increased by 55.6% to Rs 72.29 crore.
