India is a rapidly growing insurance market and the pace of change there is prompting VC companies to make investments in online insurance brands, as the population moves from cash to smartphone & online purchasing. Exciting times for any insurer or underwriter, with a potential market of 1.3 billion consumers, although the Indian government does restrict foreign companies to a maximum shareholding of around 26% – a wise move, some shareholders in Cadbury’s, Boots, Prudential etc might say. Meanwhile, here’s some news on RenewBuy’s latest fundraising round;
Latest press reports from India suggest that insurance startup RenewBuy has raised USD 19 million in a Series B funding round led by impact venture capital firm Lok Capital and IIFL Asset Management Ltd. Existing investor Amicus Capital also participated in the round.
The company raised $9.2 million in 2017 from Amicus Capital and in 2015, it had raised $500,000 in an angel funding round led by Singapore-based principal investment and advisory firm Mount Nathan Advisors Pte. Ltd
Owned and operated by D2C Insurance Broking Pvt. Ltd, RenewBuy said in a statement that the proceeds will be used for expansion into 1,000 cities and the brand aimed to reach out to 10 million customers by 2022. Currently, it is active in about 450 cities. Funds will also be used to expand the product portfolio and upgrade technology. Its app-enabled platform creates a highly efficient journey for agents, insurers, and customers.
Balachander Sekhar, CEO, RenewBuy.com said, “This new round of funding will enable us to continue our momentum as the fastest growing, full service digital insurance platform in India. It will also accelerate our entry into newer geographies and augment our product portfolio to meet India’s immense unmet insurance demand.”
He further added that the company is expected to turn profitable within next 24 months.
Since its inception in 2015, RenewBuy claims to have become the fastest growing online insurance player. The company now offers products such as health insurance, personal accident insurance and motor insurance.