Digital insurance platform RenewBuy.com has raised Rs 130 crore ($19 million) in Series B round of funding led by Lok Capital, IIFL AMC. Asset Management, an investment unit of financial services company IIFL Holdings
Amicus Capital, an existing investor, has also participated in the Series-B round, which comes after the Gurugram-based company got about Rs 60 crore in funding in October 2017.
RenewBuy was founded in 2015 by Balachander Sekhar, Indraneel Chatterjee, Sandeep Nanda, Devesh Joshi, Harman Preet Singh, and Sulbha Rai. Since then, the auto insurance platform claims over INR 500 Cr through annualised premium payments. It is currently present in 450 cities with 25K PoS partners and 1 Mn users. The company has also ventured into health and life insurance. With its most recent offering, travel concierge service TravAssured, RenewBuy has become a full-service digital insurance aggregator.
“This new round of funding will enable us to continue our momentum as the fastest-growing, full-service digital insurance platform in India… Our competitive advantage of being a capital-efficient business model will enable us to turn profitable within the next 24 months,” Sekhar said
The Insurance sector in India is dominated by banks and government agencies such as LIC, GIC, etc. However, insurance providing startups such as PolicyBazaar, Acko, RenewBuy have recently emerged as easily accessible options.
According to the IBEF, insurance penetration in India is as low as 4%. The central government had increased the Foreign Direct Investment (FDI) limit in the insurance sector from 26% to 49% under the automatic route, which will further help attract investments in the sector.
Even though currently, only 3% of insurance is bought online in India in an $80 Billion market. This share is likely to grow given the rising access of consumers to online insurance services. An emergent and growing Indian economy is going to provide a strong base for online insurance providers.