Team Startupcity

• Fresh $10M funding to support operations ahead of InsuranceDekho merger.
• Valuation pegged at $300–350M, merger could create a billion-dollar insurtech giant.
• FY24 revenue atRs 410 Cr, with ongoing investor confidence despite net losses.

Insurtech venture Renewbuy has raised $10 million (roughlyRs 86 crore) in new capital from its current investors Apis Partners and 360 One (previously IIFL Wealth), reported people with knowledge of the deal. The fund raise comes at a strategic point since the company is moving toward a proposed merger deal with InsuranceDekho, a competition platform in the insurance distribution segment.

The new funds are likely to support Renewbuy's activities and business development in the interim period as regulatory approvals for the merger are awaited. "These funds will support business development until the time the merger gets completed," an anonymous source told ET.

Though Renewbuy has not officially confirmed the fundraise, the development underscores sustained investor confidence even as the sector sees a wave of consolidation. The company last raised equity funding in June 2023, which valued it at $324 million, according to data platform Tracxn.

As first reported, InsuranceDekho is in a late-stage negotiation to buy Renewbuy in a transaction that pegs the company's worth at $300–350 million. If approved, the consolidation has the potential to form a billion-dollar company, thereby fundamentally altering India's competitive insurtech scenario. The transaction is waiting for approval from the Insurance Regulatory and Development Authority of India (IRDAI).

Based in London, Renewbuy was established in 2014. It runs a hybrid distribution model that uses digital platforms in tandem with an on-ground network of point-of-sale agents to distribute motor, health, and life insurance policies. It has raised $141 million thus far from top investors such as Dai-ichi Life Insurance (Japan), Apis Partners, and Lok Capital.

For FY 2023-24, the company has reported revenue ofRs 410 crore, along with a net loss ofRs 114 crore, which is indicative of the high-investment, high-growth character typical of scaling insurtech players.

Renewbuy operates in a growingly crowded space dominated by participants such as Turtlemint (supported by Peak XV Partners) and PB Partners (a Policybazaar subsidiary), in addition to InsuranceDekho, owned by CarDekho Group.

As digital insurance distribution evolves further, market players anticipate further consolidation and partnerships in the making. The Renewbuy insuranceDekho merger proposal is being followed closely as a possible template for scale, synergy, and consolidation in India's rapidly changing insurance landscape.