The Hindu Business Line

In­suranceDek­ho eyes Se­ries A fund­ing of $10-15 m

- KR SRIVATS Cars · India · Belgium

In­suranceDek­ho, an on­line ven­ture from CarDekho Group that of­fers mul­ti­ple in­surance ser­vices, will look to raise Se­ries A fund­ing of $1015 mil­lion in the next three­four months, ac­cord­ing to a top of­fi­cial.

“As we get into mul­ti­ple busi­ness lines with more prod­ucts, we will need cap­i­tal.

“The in­surance dis­tri­bu­tion in­dus­try in the coun­try needs more cap­i­tal,” Ankit Agarwal, CEO and Co­founder, In­suranceDek­ho, told Busi­nessLine.

In­suranceDek­ho, a twoand-a-half-old start-up, is a broking out­fit that fo­cusses on auto in­surance in the used car space.

“We want to be the OEM bro­ker for used car in­surance,” said Agarwal.

In In­dia, the used car seg­ment is not reg­u­lated and also used car in­surance is not manda­tory. Agarwal said that in­surance still has to reach Tier 2, 3 and 4 cities — be it for mo­tor, health, or life — and In­suranceDek­ho is look­ing to pen­e­trate in those cities for growth.

Be­fore In­suranceDek­ho came into the scene, there was no plat­form in the used au­to­mo­bile in­dus­try, where a cus­tomer could walk into a used car deal­er­ship or a show­room and get a pol­icy is­sued im­me­di­ately.

“Be­fore we came in, the pol­icy is­suance for used car could take be­tween two to seven days. We have now cre­ated a seam­less process and pol­icy gets is­sued im­me­di­ately.

“We have trained used-car deal­ers to sell in­surance and has con­verted the deal­er­ship into an in­surance sell­ing point,” he said.

In­dia is look­ing to al­low up to 100 per cent for­eign di­rect in­vest­ment (FDI) in in­surance in­ter­me­di­aries — a move which was an­nounced in the re­cent Bud­get, but yet to be im­ple­mented through the re­quired le­gal en­act­ment.

Any such move could help play­ers like In­suranceDek­ho raise long-term equity cap­i­tal from for­eign in­vestors in the com­ing days.

In­suranceDek­ho, on an aver­age, sells 40,000 poli­cies and clocks pre­mium of ₹45 crore per month.

Part­ner­ship

“At a later phase, I would like to rope in a strate­gic part­ner for dis­tri­bu­tion,” said Agarwal, when asked if he plans to tie up with other play­ers to ex­pand reach in in­te­rior In­dia. “Right now, sky is the limit for us. Once we get to an­nu­alised pre­mium of ₹5,000-6,000 crore in the next 18 months, we will then start look­ing at other things,” he said.

Agency net­work

Apart from train­ing used car deal­ers, In­suranceDek­ho is also build­ing its agency net­work. Plans are afoot to build out an in­surance claims ad­vi­sory desk and work with in­surance com­pa­nies to bring down their claims cost, said Agarwal.

Be­sides used car in­surance, In­suranceDek­ho has pres­ence in health in­surance too.

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