InsuranceDekho, backed by TVS Capital Funds and Investcorp, is reportedly in advanced talks to merge with smaller competitor RenewBuy in a cash-and-stock deal, a merger that will create India’s second-largest insurance aggregator, Mint has reported.
Once done, the deal is expected to create India’s largest insurance marketplace by value following PolicyBazaar, which went public in 2021.
The combined entity is projected to be valued at more than Rs 8,000 crore and is anticipated to secure additional funding before pursuing a public listing. According to sources, term sheets have already been issued, though the final details are still being thrashed out.
The merger is set to value RenewBuy at around Rs 3,000 crore, while InsuranceDekho is valued at over Rs 5,000 crore. Some early investors in RenewBuy are expected to sell parts of their stakes as part of the transaction.
InsuranceDekho and RenewBuy did not immediately respond to inquiries from Mint. Moneycontrol could not verify the report independently.
The insurance sector in India, the fifth-largest life insurance market in the world, is projected to reach $222 billion by 2026, growing at an annual rate of 32-34 percent, the International Brand Equity Foundation estimates.
In June, InsuranceDekho was in talks to raise $150 million through a mix of primary and secondary transactions, with Avendus appointed to facilitate the funding process. This fundraising will now be conducted under the merged entity, the report cited sources as saying.
This development follows a successful $60 million Series B funding round for InsuranceDekho, completed about a year ago at a valuation of $630 million.
The company used some of these funds to support the acquisition, while also focusing on enhancing its technological capabilities, increasing marketing efforts, and financing new initiatives such as reinsurance.
InsuranceDekho raised $150 million in its Series A funding round led by Goldman Sachs Asset Management and TVS Capital Funds in February 2023.
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