The company has raised Rs 130 crore of Series B funding in July at a time when industry peers are struggling to raise capital
Insurance broking firm RenewBuy is targeting a premium of Rs 800 crore in FY20. The digital insurance platform that specializes in motor insurance apart from products like health, has recently raised Rs 130 crore of Series B funding and wrote Rs 300 crore business in FY19.
This comes at a time when other firms in the sector are already struggling to raise funds to sustain the business. Unlike other companies in the sector, RenewBuy looks at renewal business in the motor insurance market which is an untapped opportunity at present. About 50-55 percent of vehicles run on Indian roads without having valid motor insurance.
Motor insurance is the biggest chunk of the general insurance business. Of this, third-party motor insurance is mandatory for all vehicles running on Indian roads.
In an interaction with Moneycontrol, Balachander Sekhar, CEO, RenewBuy said that while they have focused primarily on renewal of motor policies, the platform is looking to expand its base in life and health insurance.
“Now about 90 percent of our business comes from motor. In two years’ time, we would want the share of life and health business to go up to 25 percent,” he said. The platform was set up in 2015.
In July 2019, RenewBuy raised Rs 130 crore (US$ 19 million) in a Series B round of funding led by Lok Capital, IIFL AMC. RenewBuy’s existing investor Amicus Capital also participated in the current round. Sekhar said that this new round of funding will accelerate their entry into newer geographies and augment the product portfolio.
On the distribution front, Sekhar said the platform has been adding 1,500 new agents a month. The aim, he said, is to operationally breakeven within the next 12 months.In 2017, the company raised Rs 60 crore in its Series A round of funding from Amicus Capital, which is a mid-market growth capital fund. This fund also participated in the Series B funding round.