Indian online insurance startup Coverfox gets $22M fresh funding from World Bank’s IFC and Transamerica

Indian online insurance startup Coverfox gets $22M fresh funding from World Bank’s IFC and Transamerica

Coverfox is one of a handful of companies aiming to digitize insurance in India. Recently, it has received fresh funding via a $22 million Series C round, that will be used to push into more rural parts of the country.

The investment is led by IFC, a sister organization of Bank, and U.S. insurance firm Transamerica, with participation from existing investors SAIF Partners, Accel and Catamaran Ventures, the fund from Infosys co-founder Narayana Murthy. The company confirmed the round was actually closed in two phases, which explains why media reports around the Transamerica investment surfaced last June.

Based in Mumbai, Coverfox is a digital platform that aggregates insurance options. Currently, it works with 35 partners to offer some 150-plus packages that span , car, bike, life and insurance policies in India. Today’s announcement takes Coverfox, which was founded in 2013, to $39 million raised from investors.

Many of those same Coverfox backers have also funded digital insurance firm Acko, which was started by Coverfox co-founder Varun Dua last year. Acko and Dua made headlines when, nearly a year ago, the startup announced a $30 million seed investment round that came in before a product had even hit the market.

Acko got its from the Insurance Regulatory & Development Authority of India (IRDAI) in September to go into business, and it again attracted headlines for its relationship with Amazon. The e-commerce firm was said to be in talks to invest (no deal has been announced) while Dua himself said the company was planning to develop products for the e-commerce giant, and potentially others of that scale too.

Citing the growth of mobile data usage in rural India and a growth in digital as internet banking chips away at the bank assurance model used by most insurance brands, Singh said that rural India is better positioned for expansion than in previous years.

Coverfox isn’t yet looking at overseas options despite Singh explaining that there has been a considerable volume of inbound requests. “It’s going to happen for sure [but] we haven’t decided where to go first,” he said. Likewise, the model isn’t decided on either. Beyond a straight-up expansion, Coverfox could move into new markets via partnership or franchise.




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