RenewBuy, flush from the Series C funding the digital insurer raised last year, said it has acquired Artivatic.ai, owned by Artivatic Data Labs Pvt. Ltd.
The acquisition will allow RenewBuy to extend its tech solutions across the value chain from sales, to underwriting and claim solutions, said RenewBuy in a statement without disclosing the financial details of the transaction.
A RenewBuy spokesperson told VCCircle that the deal valued Artivatic.ai at around $10 million. The acquisition involves a mix of cash and share-swap deal.
Layak Singh, Co-Founder and CEO of Artivatic.ai, told VCCircle that as part of this transaction all its shareholders have exited. Artivatic.ai had over the years raised funding from a clutch of investors including the Indian Angel Network (IAN), KFin Technologies and Scale Ventures.
Singh added that the existing team will continue to run Artivatic.ai's post the acquisition.
Artivatic.ai was established in early 2017 by Singh and Puneet Tandon. The startup uses technology such as data analytics, artificial intelligence and machine learning to address the challenges faced by fintech and insurance businesses.
This is RenewBuy's first acquisition. Last year, RenewBuy, operated by D2C Insurance Broking Pvt Ltd, raised $55 million in its Series C funding round from investors such as UK based asset manager Apis Partners LLP and Evolvence India Fund.
The company, founded in 2015 by Balachander Sekhar and Indraneel Chatterjee, originally focused on the motor insurance sector.
In an interaction with VCCircle in December, Sekhar said that motor insurance contributes 70% to its revenue currently but it expects the mix between motor insurance and others to be 50:50 in few years.
The company currently has about 60,000 point-of-sale person (POSP) partners and has insured more than 3 million customers across 750 cities and towns.
Last year, the company also executed its second employee stock ownership plan (ESOP) buyback worth Rs 13.7 crore for its existing and former employee.
In an interaction with the news agency Press Trust of India in November, Sekhar said that the company aims to come up with an initial public offering (IPO) in two years.
