Goldman, TVS Capital may lead $150 million in InsuranceDekho | Tech Reddy

The company could be valued at $450-500 million in the funding round, said one of the two people cited above, both of whom spoke on condition of anonymity.

“The documents have been signed, only awaiting the approval of the insurance regulator,” said the second person, adding that other funds, too, will join the round, which will be an equity raise.

InsuranceDekho, operated by Girnar Insurance Brokers Pvt. Ltd, was established in 2017. The company, led by founder and chief executive officer Ankit Agrawal, has recorded the highest annual premium collection around. ₹3,600 crore in FY23, the first person said.

“The company is looking to use the money to expand its location, add a technology platform, hire people and expand its product portfolio,” said a third person familiar with the company’s plans.

InsuranceDekho reported a sales and loss of ₹47.9 million and ₹72.2 million in FY22 as against ₹29.7 million ads ₹46.4 crore loss in the previous year, according to VCCEdge.

Spokespeople for InsuranceDekho and Goldman Sachs declined to comment, while TVS Capital did not respond to a request for comment.

This is the institution’s first investment in InsuranceDekho, which is internalized and funded by parent CarDekho.

It ended up raising $250 million as part of its roughly $1.2 billion pre-IPO round.

It laid off 200 workers in August to cut costs amid a broader investment slowdown. However, India’s used car market, currently valued at $23 billion, is expected to double its growth rate, at a CAGR of 19.5% through FY26-27, according to a Mint report on September 22.

A research report by JP Morgan on November 14 in the global car industry said that the increase in car prices due to inflation and supply issues caused the increase in the prices of used cars. “Average prices increased by 42.5% in September 2022 compared to February 2020,” said the report, adding that, however, “in 2023, prices are expected to decrease by 2.5% to 5% for new cars and by 10% up to 20% on used cars.”

CarDekho, operated by Girnar Software Pvt. Ltd, net sales report of ₹884.3 million in FY21 and a loss of ₹342.8 million. FY22 financial year was not available. CarDekho also said on November 7 that it is investing $100 million in its lending subsidiary Rupyy.

Many insurance companies, such as Dekho Insurance, have been in the market to raise funds. After raising $255 million in October last year at a valuation of $1.1 billion, General Atlantic-backed digital insurer Acko General Insurance Pvt. Ltd. is also said to be in the market to raise a new round.

Fairfax-backed GoDigit General Insurance Pvt. Ltd has been testing an initial public offering, while Renewbuy is looking to raise $100 million, Mint reported earlier. Insuretech businesses are expecting rapid growth as most of India’s market is currently untapped.

A Redseer report in June said that digital insurance in the US stands at 14% of the population, 6% in China, and only 2% in India.