InsuranceDekho, the insurance startup born out of the CarDekho automobile marketplace group, has secured $60 million in fresh funding, aimed at accelerating its growth. This Series B funding round was backed by Mitsubishi UFJ Financial Group, insurer BNP Paribas Cardif, Beams Fintech Fund, and the Yogesh Mahansaria Family Office, resulting in a valuation of over $600 million for the Indian startup.
This marks the second funding round for InsuranceDekho, which also boasts support from investors such as Goldman Sachs and TVS Capital. In February of the same year, the startup, with over half of its ownership belonging to the unicorn CarDekho, raised an impressive $150 million in funding.
InsuranceDekho currently collaborates with the majority of insurance providers in India and maintains direct integration with nearly 40 insurance companies, allowing it to offer an extensive portfolio of more than 400 insurance products. Currently, auto insurance is the most sought-after insurance product offered by the startup, but it plans to broaden its offerings to include health, life insurance, and services for small and medium-sized enterprises.
Despite being one of the world’s most populous nations, India’s insurance penetration stands at less than 5% of its GDP, a stark contrast to the 12% rate in the United States. The average income of an Indian is approximately $2,100 per year, according to the World Bank. Additionally, ratings agency ICRA estimates that even among those who have purchased insurance products in India, they spend less than $100 on them.
Having established a presence in nearly 98% of India’s postal codes, InsuranceDekho is well-positioned to explore deeper penetration as the market matures, with more than 80% of its coverage being sold in smaller Indian cities.
Ankit Agrawal, co-founder and CEO of InsuranceDekho, stated that the startup is on track to generate $432 million in premium sales during the current financial year, with its core business already achieving profitability. He also mentioned the company’s plans to expand into new business areas.
Although the startup already had ample financial runway and didn’t necessarily require additional capital, Agrawal emphasized their openness to collaborating with high-quality investors. Remarkably, the funding for this round was completed within just four weeks.
InsuranceDekho currently relies on a workforce of over 150,000 gig economy agents to educate the market and sell insurance policies, as well as address inquiries from potential customers.
Numerous companies, including Digit, Policybazaar, Acko (backed by Amazon), Paytm, and PhonePe, are active in the Indian insurance product market. Agrawal argued that the involvement of fintech giants in the sector underscores its substantial size and potential.
Shashank Joshi, Deputy CEO of MUFG Bank in India, remarked, “Our entry into the insurtech sector signifies a strategic commitment to increase insurance accessibility in India. InsuranceDekho’s tech-driven last-mile distribution model perfectly aligns with our vision of advancing insurance outreach in India.
