India’s RenewBuy Secures US$45mn in Series C funding round
RenewBuy, an Indian Insurtech company based in Gururam in India, has announced it has acquired US$45mn in capital through a Series C funding round led by Apis Growth Fund II, a private equity fund managed by Apis Partners LLP.
Taking part in the funding were the existing investors Lok Capital and IIFL Wealth, with Haitong Securities taking on the role of investment banker for the deal. RenewBuy claims that there has been a considerable surge in demand for digital insurance services due to the COVID-19 pandemic. The company’s digital platform has been able to gain “significant market share” during these times, RenewBuy said.
“Strong” demand for insurance in India
Balachander Sekhar, Chief Executive Officer of RenewBuy, said: “Insurance penetration in India continues to be low at about 3.76%. The demand for insurance is strong in India, supply has always been a gap. At RenewBuy, we have solved this by creating a cutting-edge technology solution that more than 50,000 POSP advisors use – in 650 plus cities. We are taking insurance to the remotest part of the country to those who have been traditionally under-served”.
Sekhar pointed out that the company’s clients tend to prefer working with professional advisors who can explain which products are able to meet their requirements. He added that RenewBuy had been offering health, auto, and life insurance ever since the company’s services were introduced five years ago. The insurance coverage is being provided by over 35 firms.
Following the launch of its operations in 2015, RenewBuy reports an annual premium of around US$140mn and claims it has doubled its monthly turnover with over 60% of its business coming from semi-urban and rural areas based in India.
“We believe the next five years will be a phase of exponential growth for the company, reaching 25 million customers through over 200,000 POSP advisors in India and beyond”, he said.
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.