RenewBuy will be using the freshly raised funding to reach 25 millions customers in the next 5 years and aims to acquire two lakh POSP (insurance) advisors.
Gurugram-based insurtech startup RenewBuy has raised $45 million in a Series C funding round led by an investment from Apis Growth Fund II, a private equity fund managed by Apis Partners LLP, a UK-based asset manager that supports growth-stage financial services and financial technology businesses.
RenewBuy’s existing investors, Lok Capital and IIFL Wealth, also participated in the funding round.
Due to Covid-19, there has been a significant increase in demand for insurance products. The startup claims to have achieved a great acceleration in their growth.
Balachander Sekhar, CEO, RenewBuy group, said,
“Insurance penetration in India continues to be low at about 3.76 percent. The demand for insurance is strong in India, supply has always been a gap. At RenewBuy, we have solved this by creating a cutting-edge technology solution that more than 50,000 POSP advisors use – in 650 plus cities. We are taking insurance to the remotest part of the country to those who have been traditionally under-served.”
While consumers can buy directly, experience has shown that they always prefer to deal with trained advisors who can explain the product and its terms and conditions and provide assistance on future claims, Balachander added.
According to Balachander, in the five years since its launch, RenewBuy has managed to provide Health, Life, and Motor insurance provided by more than 35 insurance companies to a customer base of 2.5 million people.
“We believe the next five years will be a phase of exponential growth for the company, reaching 25 million customers through over 200,000 POSP advisors in India and beyond,” he said.
RenewBuy group, through its subsidiary D2C Insurance Broking Private Limited, enables retail customers to buy motor, health, and life insurance products with an end-to-end digital experience.
Users are able to select from a choice of insurers, compare prices and features and receive advice from trained, certified Point-of-sale person (“POSP”) providers who educate and support retail customers during every step of their journey. The entire experience is natively digital and therefore paperless and contactless, with a policy issued instantly.
Since its inception in 2015, RenewBuy claims to have become the fastest growing online insurance player in India with Rs 1,000 crore ($140 million) in annualised premium. The company has doubled its monthly run rate and has been operationally profitable over the last four quarters. More than 60 percent of its business is from semi-urban and rural areas in India, with a focus on addressing an under-insured population.
“With less than 10 percent of India’s 1.4 billion population currently insured, this sector represents a huge growth opportunity given the demographics and current penetration levels,” said Udayan Goyal, Managing Partner and Co-founder, Apis Partners.
RenewBuy is uniquely positioned to capitalise on this growth and increase its already impressive nationwide footprint, added Matteo Stefanel, Managing Partner and Co-founder, Apis Partners.
Haitong Securities was the investment banker for the transaction.