InsuranceDekho, RenewBuy's Rs 8,000-Crore Merger On The Cards

InsuranceDekho is set to merge with smaller player RenewBuy, marking a significant consolidation in the Indian insurance technology space, according to people familiar with the development.

RenewBuy will be valued at north of Rs 3,000 crore for the deal. The transaction will be in the form of a share swap deal, while final contours are still being ironed out.

InsuranceDekho is valued at Rs 5,000 crore, making the combined entity worth more than Rs 8,000 crore and becoming the second largest insurtech player, only after listed biggie PolicyBazaar Ltd.

InsuranceDekho Chief Executive Officer Ankit Agrawal is set to lead the combined entity.

RenewBuy posted a revenue of Rs 131.28 crore in FY23, with losses of Rs 74.5 crore, according to data from VCCEdge.

There was also a second round of funding expected to come in from Japanese investor Dai-ichi Life Holdings, which has not come through due to internal targets not being met, according to sources.

InsuranceDekho refused to comment on NDTV Profit's queries.

In response to NDTV Profit's queries, RenewBuy said the potential merger has "the ability to become the new insurtech leader".

"If we were to discuss potential mergers, entire team at both companies will be retained and massive hiring to grow and gain leadership position will be taken," a spokesperson said.

The company also added that there are no financial issues and that it remains "well funded and has extremely strong deep pocketed investors, ranging from Dai-ichi, Apis, IIFL etc., all of whom continue to support the company’s plans".

"RenewBuy continues to be in the growth mode and is almost 50% above last year and we will continue to invest in growing our agent franchise and other product lines as per plans—and also moving towards profitability," it said.

On the employee front, RenewBuy maintained that almost the entire leadership team has been in place since inception. "The senior management team, with over 90% retention, and mid-entry level teams across verticals and functions with close to 75-80% retention, have also been with us over the years in our growth journey."

InsuranceDekho was spun out of the Amit Jain-owned CarDekho Group. It raised more than $200 million in October, through Japanese finance giant Mitsubishi UFJ Financial Group and insurer BNP Paribas Cardif. It is also backed by TVS Capital and Goldman Sachs Asset Management.