InsuranceDekho will use the funding for branding and marketing activities as well as strengthening the product and technology teams.
GirnarSoft will invest $20 million (approximately Rs 147 crore) in its insurance subsidiary InsuranceDekho, which is an omnichannel insurance platform.
CarDekho, Zigwheels and gaadi.com are some of the other properties of GirnarSoft, which is a full-stack IT web and software development firm.
Speaking to Moneycontrol, Ankit Agrawal, CEO and Co-Founder, InsuranceDekho said that the funding will be used to invest in branding and marketing activities as well as strengthening the product and technology teams.
InsuranceDekho is registered as a direct broker (general) under the Insurance Regulatory and Development Authority of India.
"We want to strengthen the business-to-customer platform. We are present in the areas of health insurance and motor insurance. InsuranceDekho has applied for a life insurance broking licence and will use the additional funding for this new segment as well," added Agarwal.
The insurtech space is estimated to be growing at 50-60 percent on a yearly basis. Motor insurance is the largest business for this space but it faced a sharp slump due to poor vehicle sales during the Coronavirus lockdown. With restrictions eased out, this industry has picked up pace since July 2020.
On the other hand, the health insurance segment has gained traction in the insurtech space due to the Coronavirus fears.
Set up in 2017, InsuranceDekho uses technology with insurance. Customers can compare different insurance policies based on their requirements and offering them need-based products. The firm has a network of 450 cities and has tied up with 26 general insurance companies.
"Unlike other firms, we have been very clear that InsuranceDekho will not sell products with the cheapest premium. We look at customers' lifestyles and then suggest appropriate insurance policies," he added.
In FY20, InsuranceDekho had a business of Rs 600 crore. This year, Agarwal said that the company will end with a Rs 1,000 crore business.
InsuranceDekho is also planning to onboard 100,000 point-of-sales persons (PoSPs) to distribute the insurance policies in FY21. The insurtech firm has already onboarded 20,000 PoSPs so far.
“InsuranceDekho has inherited CarDekho’s capital efficiency and technology prowess but are building a large and independent business of their own. This proposed fund infusion is our vote of confidence in their ability to build India’s most enduring insuretech business in India,” said Amit Jain, CEO and Co-Founder, GirnarSoft.
As far as the business is concerned, Agarwal of InsuranceDekho said motor business, especially in the commercial segment is back to normal since intra- and inter-city transport via trucks and heavy vehicles is back after the Coronavirus-led lockdown.He said with some offices opening up and individuals venturing out, retail motor insurance is also picking up.