InsuranceDekho raises fresh funds ahead of signing bankers to its IPO
The startup raised funds from Beams Fintech, MUFG Bank and BNP Paribas, and is expected to appoint bankers for an initial public offering later this year.
Insurtech startup InsuranceDekho has raised capital from Beams Fintech Fund, MUFG Bank and C. Development, an associate firm of BNP Paribas Cardif, documents filed with the ministry of corporate affairs showed. This is part of a larger fundraiser that could go up to $75-100 million, two people familiar with the matter told Mint.
The filings showed that the firms bought 4.33 million shares of InsuranceDekho for ₹121.9 crore.
The startup is expected to appoint bankers for an initial public offering over the next 3-4 weeks, the people said. They added that the company plans to fast-track is IPO plans.
“It should be ready for a public offering sometime later this year and is likely to be their last fundraise before the listing," one person said. “The round is internal with participation from existing investors. It only has a primary component that the company plans to use towards its expansion and inorganic growth plans."
The funding will come in multiple tranches with other existing investors also expected to come on board over the next 2-3 weeks, the second person said, adding that details of the valuation have not been fully determined.
InsuranceDekho, Beams and C. Development did not immediately respond to Mint’s requests for comment. MUFG declined to comment.
Mint first reported in June that the company was in early talks to raise $100-150 million and had appointed Avendus to help with the process. In October, Mint exclusively reported that the company was in final stages to merge with smaller peer RenewBuy in a cash-and-stock deal that would create India’s second-largest insurance aggregator.
InsuranceDekho raised $60 million in its Series B round in October 2023 at a valuation of $630 million. The round was led by Japan’s Mitsubishi UFJ Financial Group (MUFG), BNP Paribas Cardif through its insurtech fund managed by European investment major Eurazeo, Beams Fintech Fund and Yogesh Mahansaria Family Office.
Other investors
At the time, the company outlined plans to beef up tech capabilities, enhance marketing efforts, finance new initiatives like reinsurance, and pursue inorganic growth plans through the fund-raise.
InsuranceDekho raised $150 million in its Series A round led by Goldman Sachs Asset Management and TVS Capital Funds in February 2023. Its other existing investors include Investcorp, Avataar Ventures and LeapFrog Investments.
Founded in 2017 by Ankit Agrawal and Ish Babbar, InsuranceDekho earns about 82% of its premium from Tier-II cities and beyond. With more than 6 million customers, the company has direct integration with 46 insurance companies in India, offering over 380 products, including 175 for health and life and claims to be present in about 1,500 towns. It competes with Acko, Turtlemint and PolicyBazaar.
InsuranceDekho is a subsidiary of automobile portal CarDekho, which pivoted from selling used vehicles to vehicle financing. Jaipur-based CarDekho, which became a unicorn in 2021, competes with CarTrade, Spinny, and Cars24. In December 2023, it acquired shared mobility startup Revv.
In FY24, InsuranceDekho's operating revenue surged 670% to ₹743.6 crore from ₹96.5 crore a year earlier. It posted a profit of ₹85.7 crore as compared to a loss of ₹51.6 crore in FY23, as per an Inc42 report.
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