Insurtech platform InsuranceDekho has raised $150 million in a mix of equity and debt funding, led by Goldman Sachs Asset Management and TVS Capital Fund.

Investcorp, Avataar Ventures and LeapFrog Investments also invested as part of the equity funding. The share allotment to some of these investors began in January.

Of the total funding, $110-$120 million is the equity portion, valuing InsuranceDekho at $450-$500 million post-money, sources aware of the deal told ET.

After the latest fundraising is complete, external institutional investors will hold 20-22% stake in the insurance platform, while the rest will be with its parent entity GirnarSoft group (which also owns Cardekho) and employees, the people said.

In September 2020, InsuranceDekho raised $20 million from GirnarSoft.

InsuranceDekho’s funding comes at a time when digital insurer Acko is in talks to raise over $100 million, as a part of its latest raise. In addition, private general insurance player Digit is also looking to refile papers and proceed with its $440 million initial public offering (IPO).

“India continues to be an under-penetrated market in terms of insurance, and post-Covid-19 customers have become more aware about buying a cover. This has had a positive impact on the insurance industry, across all segments leading to the industry growing almost 15% on an annual basis,” cofounder and chief executive Ankit Agrawal told ET. “We will approach acquisitions from a geographic, product or capability expansion point of view and are looking at businesses across all stages.”

At present, motor insurance is the largest category for InsuranceDekho, contributing to 80% premiums generated from the platform, with health, life, fire among others contributing to the rest. According to Agrawal, by FY25, the company expects to hit a healthy mix of 50% premiums coming from motor, with the rest being contributed by other categories.

“InsuranceDekho has demonstrated a proven ability to bring new-to-insurance channel partners to their platform, while empowering them through technology-based solutions and working closely with insurers,” said Rajat Sood, managing director at Goldman Sachs Asset Management.

The company is looking to exit FY23 disbursing total premiums of Rs 2,000 crore and to achieve an annualised premium run-rate of Rs 3,500 crore by the end of the current quarter.

It has doubled its annual premium disbursals from Rs 1,000 crore in FY21, Agrawal added.

“This is Investcorp’s first investment into the Indian insurtech market and we are excited to support InsuranceDekho in its journey,” said Varun Laul, partner, Investcorp.

The company is looking to turn profitable on an earnings before interest, taxes, depreciation, and amortization (Ebitda) level by the end of this quarter, and looks to be profitable on a full-year basis, in FY24.

Founded in 2016 by Agrawal and Ish Babbar, InsuranceDekho enables customers to compare various insurance policies and helps them purchase the most suitable plan.

It received a licence from the Insurance Regulatory Development Authority of India (IRDAI) to act as a direct insurance broker in 2017.

The company has tie-ups with 46 insurance companies offering more than 380 plans on its platform.

The company is expected to use the latest funds to go into 600,000 villages with the help of on-ground agents; improve its underwriting and claim settlement servicing capabilities, look at new acquisition opportunities as well as invest in brand building.

It will also look to use the investment to bolster its presence across health, life and micro, small and medium enterprise (MSME) insurance segments.

InsuranceDekho has an on-ground force of almost 80,000 insurance advisors which sell and distribute insurance products from the platform. It looks to scale this number to 200,000 by the end of the current calendar year.