InsuranceDekho acquires Sequoia-backed SME insurance firm Verak

By Malvika Maloo

  • 04 Apr 2023
Credit: 123RF.com

Investcorp-backed InsuranceDekho, which raised $150 million in one of the largest Series A rounds across the country, on Tuesday said it has bought Mumbai-based small and medium enterprise (SME) insurance distribution firm Verak, for an undisclosed amount. 

The company did not disclose the financial details of the transaction. 

The acqui-hire is expected to help InsuranceDekho, part of CarDekho group, to grow its SME insurance vertical as it expands its offerings in the micro-business insurance space. Verak’s founder Rahul Mathur, who previously founded BimaPe, will join InsuranceDekho along with his team.

Verak uses a partnership-led model to tap into the micro-business insurance space. The startup, backed by investors including Sequoia and Lightspeed, has been registering 30% month-on-month growth on premiums, according to a statement.

“Verak's expertise in SME insurance will complement our distribution network in India,” said Ankit Agrawal, co-founder and chief executive of InsuranceDekho, in the statement.

“Rahul (Mathur) holds a pedigree in the insurance sector, carrying work experience in the Indian as well as the global landscape,” Agrawal said separately in LinkedIn post.

“InsuranceDekho's relationships with insurers and infrastructure will help us resolve the challenges that we faced during our formative years, such as commanding higher commissions from insurers, getting the right talent to hire and also API-based insurer integration."

Apart from Investcorp, InsuranceDekho is backed by investors such as Goldman Sachs AMC and TVS Capital.

In February, Agrawal told VCCircle that the company is aiming to go beyond urban areas. Launched in 2019, InsuranceDekho currently earns about 82% of its premium from tier-II cities and beyond.

It competes with the likes of Acko, Turtlemint and Policybazaar and claims to be present in about 1,300 towns, having direct integration with 46 insurance companies in India, offering over 380 insurance products.