InsuranceDekho Accelerates IPO Plans with fresh Funding Round
In a meaningful move toward its public listing, insurtech startup InsuranceDekho has secured fresh capital from Beams Fintech Fund, MUFG Bank, and C. Development, an associate firm of BNP Paribas cardif. According to documents filed with the Ministry of Corporate Affairs, this funding is part of a larger fundraiser that could reach $75-100 million, as reported by two sources familiar with the matter [1].
The filings reveal that these firms purchased 4.33 million shares of InsuranceDekho for ₹121.9 crore. The startup is expected to appoint bankers for its initial public offering (IPO) within the next 3-4 weeks, with plans to fast-track the process. “It should be ready for a public offering sometime later this year and is likely to be their last fundraise before the listing,” one source stated.
This funding round, which is internal and involves participation from existing investors, will primarily support the company’s expansion and inorganic growth plans. The capital will be disbursed in multiple tranches,with other existing investors expected to join over the next 2-3 weeks. However, the exact valuation details remain undetermined.InsuranceDekho’s journey toward an IPO has been marked by strategic moves.In June, the company was reportedly in early talks to raise $100-150 million and had appointed Avendus to assist with the process. By October, it was in the final stages of merging with smaller peer RenewBuy in a cash-and-stock deal, which would create India’s second-largest insurance aggregator [2].
The startup’s financial performance has been extraordinary. In FY24, its operating revenue surged 670% to ₹743.6 crore from ₹96.5 crore in the previous fiscal year. It also posted a profit of ₹85.7 crore, a significant turnaround from the ₹51.6 crore loss in FY23 [3].
Founded in 2017 by Ankit Agrawal and Ish babbar, InsuranceDekho has carved a niche in india’s insurtech space. The company earns about 82% of its premium from Tier-II cities and beyond, serving over 6 million customers. With direct integration with 46 insurance companies, it offers more than 380 products, including 175 for health and life, and claims a presence in approximately 1,500 towns.
InsuranceDekho’s parent company, CarDekho, has also been making waves. The Jaipur-based automobile portal, which became a unicorn in 2021, pivoted from selling used vehicles to vehicle financing. In December 2023, it acquired shared mobility startup Revv, further diversifying its portfolio.
As InsuranceDekho gears up for its IPO, the company’s focus on tech capabilities, marketing efforts, and inorganic growth positions it as a formidable player in the insurtech sector. With a robust financial performance and strategic investor backing,the startup is poised to make a significant impact in the public markets.
| Key Highlights | Details |
|—————————————-|—————————————————————————–|
| Fresh Funding | $75-100 million from Beams Fintech Fund, MUFG Bank, and C. Development |
| IPO Plans | bankers to be appointed in 3-4 weeks; IPO expected later this year |
| FY24 Revenue | ₹743.6 crore, up 670% from ₹96.5 crore in FY23 |
| FY24 Profit | ₹85.7 crore, compared to a ₹51.6 crore loss in FY23 |
| Customer Base | Over 6 million customers, 82% premiums from Tier-II cities and beyond |
| Product Portfolio | 380+ products, including 175 for health and life |
| Parent Company | CarDekho, acquired Revv in December 2023 |
insurancedekho’s journey from a startup to a potential IPO candidate underscores its resilience and strategic vision. As it prepares to enter the public markets, the company’s focus on innovation and expansion will be key to its continued success.
Editor: can you provide more details about the recent funding round for InsuranceDekho?
guest: Certainly! InsuranceDekho recently secured a fresh funding round through investments from Beams Fintech Fund, MUFG Bank, adn C Progress. While the initial disclosed amount is $25 million, this funding is part of a larger fundraiser that could potentially reach between $75 million and $100 million. This round is internal, meaning it involves participation from existing investors, and the capital will be disbursed in multiple tranches. The primary focus of this funding is to support InsuranceDekho’s expansion and inorganic growth plans.
editor: What are the company’s plans regarding an initial public offering (IPO)?
Guest: InsuranceDekho is gearing up for its IPO in a meaningful way. The company is expected to appoint bankers for the listing process within the next 3-4 weeks. The goal is to fast-track the IPO, with plans to go public later this year. This funding round is likely to be the last before the listing, as the company aims to solidify its financial position and growth trajectory ahead of the public offering.
Editor: How has InsuranceDekho’s financial performance been in recent years?
Guest: The company has shown remarkable financial growth. In the fiscal year 2024 (FY24), InsuranceDekho’s operating revenue surged by 670% to ₹743.6 crore, up from ₹96.5 crore in the previous fiscal year. Additionally, the company posted a profit of ₹85.7 crore, marking a significant turnaround from the ₹51.6 crore loss it incurred in FY23. This notable performance highlights the company’s strong market presence and operational efficiency.
Editor: Can you elaborate on InsuranceDekho’s customer base and product offerings?
Guest: Absolutely. InsuranceDekho has a robust customer base of over 6 million, with approximately 82% of its premium coming from Tier-II cities and beyond. The company has direct integration with 46 insurance companies and offers more than 380 products, including 175 dedicated to health and life insurance. Its presence spans approximately 1,500 towns,making it a significant player in India’s insurtech space.
Editor: What role does CarDekho, InsuranceDekho’s parent company, play in its growth?
Guest: CarDekho has been instrumental in shaping InsuranceDekho’s journey. The Jaipur-based automobile portal, which became a unicorn in 2021, initially focused on selling used vehicles before pivoting to vehicle financing. In December 2023, CarDekho acquired the shared mobility startup revv, further diversifying its portfolio. this strategic backing from CarDekho has provided InsuranceDekho with the resources and support needed to scale its operations and innovate in the insurtech sector.
Editor: What are the key takeaways from InsuranceDekho’s journey so far?
Guest: InsuranceDekho’s journey is a testament to its resilience and strategic vision. The company has demonstrated exponential revenue growth, achieving profitability in FY24 after a loss in the previous fiscal year. With a strong focus on tech capabilities, marketing efforts, and inorganic growth, insurancedekho is well-positioned to make a significant impact as it prepares for its IPO.Its extensive customer base, diverse product offerings, and strategic backing from CarDekho further underscore its potential for continued success in the public markets.
