Indian fintech startup InsuranceDekho raised $150 million from a clutch of investors led by Goldman Sachs Asset Management, an unusually large investment round that will help it target an under-served domestic market. TVS Capital Funds co-led the equity and debt financing, the largest-ever Series A round for an Indian insurance technology company, the startup said in a statement. Investcorp, Avataar Ventures and LeapFrog Investments participated.
InsuranceDekho — Hindi for “Check Out” Insurance — was founded by Ankit Agrawal and Ish Babbar in 2016. It will use the new capital scale up technology and product, expand into new markets and grow the company’s business with small and medium enterprises. It could also bankroll acquisitions. The business, which has its headquarters in the Delhi suburb of Gurgaon, aims to reach an annually premium run rate of 35 billion rupees ($423 million) by March. It faces competition from companies like Amazon.com Inc.-supported Acko General Insurance Ltd. and PolicyBazaar from PB Fintech Ltd., which is funded by SoftBank Group Corp. About three-quarters of insurance plans offered in India are still acquired by the country’s urban population. But by utilising technology for wider distribution, digital businesses like InsuranceDekho want to reach consumers in smaller cities and rural areas.
CEO Agrawal stated in an interview that “there are two Indias within India.” “The real India lies in the small towns and villages, where the keys to buying insurance are affordability and trust.”
The investment round took place when the global venture capital market was struggling. According to CB Insights, funding in India fell to $2.7 billion in the most recent quarter, the lowest level in more than two years. More than 80% of the insurance products sold by InsuranceDekho, a division of used car marketplace CarDekho, are sold outside of the major cities. By the end of the year, the business, which already serves 1,300 municipalities, hopes to have over 200,000 advisers using its platform.
According to the company, which cited the India Brand Equity Foundation and Statista, insurance penetration in India is roughly 4.2% of gross domestic product, compared to 12% in the US and below the global average of 7%
