InsuranceDekho, the insurance startup incubated within CarDekho, has successfully raised $60 million in a new funding round. The latest financing was led by Mitsubishi UFJ Financial Group, BNP Paribas Cardif, Beams Fintech Fund, and Yogesh Mahansaria Family Office, valuing the Indian startup at over $600 million. This latest funding round comes just a few months after InsuranceDekho raised $150 million in February, with support from backers such as Goldman Sachs and TVS Capital.
Key Takeaway
InsuranceDekho, the insurtech startup incubated within CarDekho, has raised $60 million in a recent funding round, increasing its valuation to over $600 million. With a strong market presence, direct integration with nearly four-dozen insurance providers, and expansion plans into health and life insurance, InsuranceDekho is well-positioned to penetrate the growing Indian insurance market.
InsuranceDekho’s Strong Market Position
InsuranceDekho offers over 400 insurance products through direct integration with nearly four-dozen firms. Specializing in automobile coverage, the startup also plans to expand into health and life insurance categories, as well as serve small and medium-sized enterprises. With a presence in about 98% of all zip codes in India, InsuranceDekho has a vast opportunity to deepen its market reach.
India’s Growing Insurance Market
India’s insurance penetration currently stands at less than 5% of the GDP, compared to 12% in the United States. With an average annual income of about $2,100, Indians are estimated to spend less than $100 on insurance products, according to ICRA. However, the insurtech sector in India is growing rapidly, with companies like InsuranceDekho, Digit, PolicyBazaar, Acko, Paytm, and PhonePe competing to meet the increasing demand.
InsuranceDekho’s Path to Success
InsuranceDekho, which is majority-owned by unicorn CarDekho, is currently on track to sell $432 million worth of premium in the current financial year. The startup has established itself as a profitable business and is looking to expand into new business lines. InsuranceDekho employs over 150,000 gig-economy workers, known as “agents,” to educate the market and sell its insurance products. These agents also provide support to prospective customers by answering their policy-related queries.
