In a move that could reshape India’s insurance market, InsuranceDekho, backed by TVS Capital Funds and Investcorp, is in advanced discussions to merge with competitor RenewBuy, reports Mint. This anticipated cash-and-stock merger could elevate the combined entity as India’s second-largest insurance aggregator by value, next to industry leader Policybazaar.
Key Points:
- Valuation Surge: The merger could position the combined company at a valuation exceeding ₹8,000 crore, making it a dominant player in India’s burgeoning insurance aggregator market.
- Strategic Moves: Sources indicate that initial term sheets are in place, with final deal details being negotiated. The merger will value RenewBuy around ₹3,000 crore and InsuranceDekho at over ₹5,000 crore.
- Investor Activity: Some of RenewBuy’s early investors are expected to partially sell their stakes as part of the agreement.
- Future Plans: Following the merger, the joint entity plans to seek additional funding to support its ambitions of a public listing.
The deal builds on InsuranceDekho’s rapid expansion strategy, following its successful Series B funding round that raised $60 million last year at a valuation of $630 million. In its prior Series A round, led by Goldman Sachs Asset Management and TVS Capital Funds in early 2023, InsuranceDekho raised $150 million, which was used to bolster acquisitions and technological advancement.
The Indian insurance sector, currently the fifth-largest life insurance market globally, is projected to grow annually at 32-34%, potentially reaching $222 billion by 2026, according to the International Brand Equity Foundation.
