Indian fintech startup InsuranceDekho has received $150 million from a group of investors led by Goldman Sachs Asset Management.
TVS Capital Funds jointly led equity and debt financing, the largest first round of venture financing for an Indian insurance technology company. It was attended by Investcorp, Avataar Ventures, and LeapFrog Investments.
InsuranceDekho, founded by Ankit Agrawal and Ish Babbar, plans to use new technologies and products to raise capital, enter new markets, and develop the company’s business with small and medium enterprises.
The company aims for March annual premiums of $423 million. InsuranceDekho is one of the up-and-coming companies and is competing with such organizations as PolicyBazaar PB Fintech Ltd. backed by SoftBank Group Corp. and Acko General Insurance Ltd. backed by Amazon.com Inc.
Many types of insurance are still mainly purchased by India’s urban population, accounting for about three-quarters of the policies sold. However, startups such as InsuranceDekho are planning to expand into smaller cities and the countryside, using the technology to spread it more widely.
The Series A round came at a rather challenging time for the global venture capital market. Financing in India slipped to $2.7 billion last quarter.
InsuranceDekho sells the majority of its insurance products in around 1300 smaller towns and aims to have more than 200000 consultants on its platform by the end of the year.
Insurance in India accounts for approximately 4.2% of the gross domestic product, below the global average of 7%.
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