Coverfox will use the funding to expand insurance coverage into Tier II and III cities, diversify its product portfolio, and drive new technology development and innovation.
Indian insure-tech startup Coverfox.com on Thursday announced that it had raised $22 million as a part of its Series C funding. The round was led by IFC, a sister organisation of the World Bank Group, as well as Transamerica along with other existing investors.
As a part of its ongoing fund raise, it was reported in June last year that the Mumbai-headquartered company had raised close to $15 million as a part of Series C led by US insurer Transamerica.
The company has previously raised $17 million in Series A and B funding, from SAIF Partners, Accel, and Catamaran Ventures, NR Narayana Murthy’s private investment arm.
The company is expected to use the funds to expand insurance coverage into Tier II and III cities and specifically address women’s needs, while looking to further diversify its product portfolio. The investment will also be used to drive new technology development and innovation. This development will also be seen in Coverdrive, Coverfox’s Android App that helps insurance agents go digital and grow their businesses.
This initiative is also targeted towards creating job opportunities for college students, housewives and unemployed youth in India.
Founded in 2013 by Devendra Rane, Coverfox has integrated with more than 35 insurers, and offers more than 150 policies in motor, life, and health insurance at present. Using its proprietary technology and algorithm-based platform, users can compare and buy a range of policies across top insurance companies.
Speaking on the investment, Jun Zhang, IFC Country Head for India, said, “India has one of the most underpenetrated insurance markets, with low penetration rates for women and rural populations. By investing in Coverfox, IFC is giving a push to the country’s digitisation agenda by leveraging technology to deliver insurance products to customers outside metros and to women who are currently underserved.”
Premanshu Singh, Chief Executive Officer, Coverfox.com commented, “The passionate team at Coverfox is building Asia’s best insure-tech platform to help end-users buy any policy without getting spammed by telecallers. The current fund raise is a validation of our vision. The money would be used to strengthen our product or technology capabilities. Further, a large portion of the investment would go into improving user experience by going both horizontal and vertical into each insurance category. We are very happy to welcome IFC and Transamerica to our family.”
Coverfox at present competes with Acko General Insurance, the Mumbai-based insure-tech startup that grabbed headlines last year by raising $30 million in seed funding. The startup was started by Coverfox Co-founder Varun Dua.
Earlier this year, financial services company Paytm also forayed into insurance by registering two companies under the names Paytm Life Insurance Ltd. and Paytm General Insurance Ltd. with the Registrar of Companies (RoC).