Leading investors Goldman Sachs Asset Management and TVS Capital Fund have raised $150 million for the insurtech platform InsuranceDekho through a combination of stock and loan financing. As part of the equity funding, Investcorp, Avataar Ventures, and LeapFrog Investments also contributed. Some of these investors started receiving their share allocation in January. According to sources, $110–120 million of the overall capital will go into equity, valuing InsuranceDekho at $450–500 million post–money.

The most recent fundraising, the insurance platform's parent company, GirnarSoft group (which also owns Cardekho), and its employees will own the remaining 20-22% of the company, according to the persons. InsuranceDekho received $20 million from GirnarSoft in September 2020.

The fundraising for InsuranceDekho comes as digital insurer Acko is negotiating to raise over $100 million as part of its most recent raise. Additionally, private general insurance company Digit wants to resubmit documents and move on with its $440 million initial public offering (IPO).

"India is an underserved market for insurance, even though consumers are now more aware of the benefits of purchasing a policy after the Covid-19 incident. Ankit Agrawal, co-founder and CEO of the company, noted that this had a good effect on the insurance market across all categories, causing the sector to grow by approximately 15% annually. We are considering enterprises in all stages and will approach acquisitions from a regional, product, or capabilities expansion point of view.

Currently, vehicle insurance makes up the majority of InsuranceDekho's product categories, accounting for 80% of the platform's premiums; the remainder is made up of products including health, life, and fire insurance. Agrawal claims that by FY25, the business anticipates reaching a healthy balance of 50% of premiums coming from motor and the remaining 75% coming from other categories.

According to Rajat Sood, managing director at Goldman Sachs Asset Management, "InsuranceDekho has established a proven ability to recruit new-to-insurance channel partners to their platform, while enabling them through technology-based solutions and working directly with insurers."

The company hopes to reach an annualised premium run-rate of Rs 3,500 crore and complete FY23 with total premium payments of Rs 2,000 crore. According to Agrawal, the amount of annual premium payments has increased from Rs 1,000 crore in FY21. Varun Laul, partner at Investcorp, stated, "This is our first investment in the Indian insurtech market, and we are thrilled to help InsuranceDekho on its path.

By the end of this quarter, the company hopes to become profitable on an earnings before interest, taxes, depreciation, and amortisation (Ebitda) basis. By the end of FY24, the company hopes to achieve full-year profitability. Agrawal and Ish Babbar founded InsuranceDekho in 2016 to assist people assess different insurance plans and choose the one that best suits their needs. In 2017, the Insurance Regulatory Development Authority of India (IRDAI) granted it a licence to function as a direct insurance broker.

The company offers more than 380 policies on its website through partnerships with 46 insurance carriers. The company plans to use the most recent funding to employ on-the-ground agents to visit 600,000 villages, enhance its underwriting and claim settlement processing skills, explore for additional acquisition prospects, and make investments in brand building.

Additionally, it plans to use the investment to strengthen its position in the micro, small, and medium-sized enterprise (MSME) and life insurance markets. Nearly 80,000 insurance advisors work for InsuranceDekho directly and sell and distribute insurance products through the network. This number is anticipated to increase to 200,000 by the conclusion of the current year.