Digital insurance platform, RenewBuy.com, on Tuesday said that it has raised Rs 130 crore ($19 million) in a Series B funding round led by Lok Capital, IIFL Wealth. RenewBuy’s existing investor Amicus Capital also participated in the current round.
The company plans to use the funds in order to expand into newer geographies as well as introduce newer products to its portfolio.
The executive team at RenewBuy
Commenting on the announcement, Balachander Sekhar, CEO, RenewBuy.com said,
“This new round of funding will enable us to continue our momentum. It will also accelerate our entry into newer geographies and augment our product portfolio to meet India’s immense unmet insurance demand. Our competitive advantage of being a capital efficient business model will enable us to turn profitable in the next 24 months while retaining our explosive growth”.
Started in 2015, RenewBuy is an online insurance aggregator which provides motor, health insurance along with personal accident cover. With a network of over 25,000 Point of Sale (POS) partners on its platform, the company is currently present in over 450 cities and recieves Rs 500 crore in annualised premium.
Commenting on the announcement, Venkatesh Natarajan, Co-Founder & Managing Partner, Lok Advisory Services said,
“RenewBuy is Lok’s first investment in the insurance space. A highly passionate team with deep domain expertise, a differentiated business model, and technology-led fulfilment coupled with a clear focus on service have enabled the company to demonstrate exponential growth. We are excited to partner with a company that is disrupting the insure-tech space and is on course to emerge as the leader in the category in the next few years”
According to the startup, it is on course to cover 1,000 new cities by 2022, by bringing on board more than 200,000 POS partners. Additionally, the company is also looking to insure 10 million customers by 2022.
Prashasta Seth, Senior Managing Partner, IIFL AMC, said,
“By 2020, around 650 million Indians will be online, and every aspect of their life will be digital. RenewBuy.com has created one of the most cost efficient, customer-centric model through its proprietary end-to-end digital insurance platform and has digitized the entire insurance value chain. We have full confidence in this team as they disrupt this fast-growing category and continue their rapid growth towards leadership in the space.”
Earlier in 2017, RenewBuy had raised Rs 60 crore in its Series A round of funding from Amicus Capital, mid-market growth capital fund, which is also participating in the current round.