Insurtech Startup InsuranceDekho Acquires Verak to Expand SME Insurance Offerings in India
InsuranceDekho expands its insurance offerings for small businesses with acquisition of Verak
5 April 2023
Indian insurtech startup InsuranceDekho acquires Verak, a Mumbai-based SME insurance distribution company.
The acquisition will help InsuranceDekho strengthen its presence in the SME insurance market and expand its range of services.
InsuranceDekho aims to achieve an annualized premium run rate of ₹3,500 crores by March 2023 and establish 100% penetration in India.
InsuranceDekho, one of the leading insurtech startups in India, has recently acquired Verak, a Mumbai-based SME insurance distribution company. Ankit Agrawal, the CEO of InsuranceDekho, announced the acquisition on LinkedIn, highlighting the solid foundation and untapped potential of Verak. Since its inception, Verak has achieved a 30% month-on-month premium growth by venturing into micro-business insurance schemes and bringing small shopkeepers under the insurance umbrella.
With the acquisition of Verak, InsuranceDekho is expected to gain a stronger foothold in the SME insurance market and micro-business insurance schemes. The insurtech startup will onboard the Verak team, including its founder Rahul Mathur, who has a strong pedigree in the insurance sector, having worked at Laka Insurance and Accenture in the UK before launching his own startup. Agrawal and his co-founder, Ish Babbar, are convinced of Mathur's passion and expertise.
The acquisition comes after InsuranceDekho raised a massive $150 million in a funding round consisting of equity and debt in February this year. The funding round was led by Goldman Sachs Asset Management and TVS Capital Funds, with participation from Investcorp, Avataar Ventures, and LeapFrog Investments. InsuranceDekho is the insurance arm of CarDekho, a car-selling unicorn, and aims to achieve an annualized premium run rate of ₹3,500 crores by March 2023.
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At present, InsuranceDekho's footprint covers more than 1,300 towns, covering 98% of pin codes in India. The insurtech startup aims to have over 2 lakh insurance advisors active on its platform by the end of 2023 and establish 100% penetration in the country. The acquisition of Verak is expected to enhance InsuranceDekho's capabilities and expand its range of services for small and medium-sized businesses.
In conclusion, InsuranceDekho's acquisition of Verak is a strategic move to strengthen its presence in the SME insurance market and tap into the untapped potential of micro-business insurance schemes. The acquisition is expected to bring valuable expertise and insights to InsuranceDekho, further enhancing its capabilities and expanding its range of services for customers.