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InsuranceDekho, the insurance company founded within automotive market group CarDekho, has raised $60 million in a new funding round as the startup accelerates its growth.
Mitsubishi UFJ Financial Group, insurance company BNP Paribas Cardiff, Beams Fintech Fund and Yogesh Mahansaria Family Office fund InsuranceDekho’s Series B funding, valuing the Indian startup at 600 million yen exceeded the dollar.
Wednesday’s funding is the second round of funding for InsuranceDekho, whose backers also include Goldman Sachs and TVS Capital. The startup, which is more than half-owned by unicorn CarDekho, raised $150 million in funding in February this year.
InsuranceDekho has partnered with most insurance companies in the country and has direct integrations with around 40 companies, offering over 400 insurance products. According to the company, auto insurance is currently the most popular insurance product it sells, and it is preparing to expand into health and lifestyle categories as well as serve small and medium-sized businesses.
India’s current insurance penetration rate is less than 5% of GDP, compared to 12% in the US. According to the World Bank, the average Indian earns about $2,100 a year. Rating agency ICRA estimates that every Indian who buys insurance products spends less than $100.
The startup has established a presence in approximately 98% of all zip codes in the country, giving it an opportunity to go deeper as the market matures. He sells more than 80% of his total coverage in small cities of India.
Ankit Agrawal, co-founder and chief executive officer of InsuranceDekho, told TechCrunch in an interview that the company is on track to sell $432 million worth of insurance premiums this fiscal year, and its core business is He said he is making a profit. “We continue to expand into new business areas,” he said.
The startup already had years of runway and didn’t need any new funding, but Agrawal said he’s always open to working with quality investors. He said consideration for this round of funding took just four weeks to complete.
InsuranceDekho currently relies on more than 150,000 gig economy workers, known as “agents,” to educate the marketplace and sell insurance. These employees will also answer any questions prospective customers may have regarding their insurance policies.
A number of companies sell insurance products in India, including Digit, which is aiming to go public, listed company Policy Bazaar, Amazon-backed Ako, Paytm and Phonepe. Agrawal asserted that the entry of fintech giants into this space is indicative of market size and opportunity.
“Our entry into the insurtech space represents a strategic move to increase the accessibility of insurance in India. InsuranceDekho’s technology-driven last-mile distribution model will drive insurance adoption in India. This is fully in line with our vision,” Shashank Joshi, Deputy CEO, MUFG Bank, India, said in a statement.