Insurtech startup InsuranceDekho said it has raised $60 million in a Series B funding round led by Japan’s Mitsubishi UFJ Financial Group (MUFG); insurer BNP Paribas Cardif through its insurtech fund managed by European investment major Eurazeo; Beams Fintech Fund; and Yogesh Mahansaria Family Office.
A person aware of the transaction said the investment valued the company, the insurance unit of used-car platform CarDekho, at around $600 million.
While a large part of the funding round is equity, a small portion has been raised via debt, the company said. InsuranceDekho’s existing investors, TVS Capital, Goldman Sachs Asset Management and Avataar Ventures, also invested in the latest funding round.
The funding will be used to beef up tech capabilities, enhance marketing efforts finance new initiatives like reinsurance, and pursue inorganic growth plans.
The company raised $150 million from investors led by US-based Goldman Sachs Asset Management and TVS Capital Funds as part of its Series A round of funding in February this year. It is also backed by other investors such as Investcorp, Avataar Ventures and LeapFrog Investments.
The company earns about 82% of its premium from Tier-II cities and beyond. It competes with the likes of Acko, Turtlemint and PolicyBazaar, and claims to be present in about 1,500 towns, with more than 90% of its premium coming from tier-II regions and beyond.