InsuranceDekho has raised $150 million in equity and debt funding, making the deal the largest Series A round for an Indian insurtech company.

The equity round was led by Goldman Sachs Asset Management and TVS Capital Funds, with participation from Investcorp, Avataar Ventures and LeapFrog Investments.

InsuranceDekho, founded by Ankit Agrawal and Ish Babbar in 2016, is targeting an annual premium run rate of Rs 3,500 crore by March 2023. It will use the funding to improve technology, enter new markets and launch products in the health and lifestyle categories. The money will also cover the company’s micro, small and medium enterprise (MSME) insurance business and strengthen its leadership team.

“Though insurance is critical to everyone’s financial security, its penetration is still at 4.2% of India’s GDP compared to global coverage of 7.4%. The key is to reach out to the middle and lower-middle-income groups living in the following 1,000 cities in India. Praveen Sreedharan, Partner, TVS Capital Funds, said, InsuranceDekho provides a powerful mechanism to extend this penetration.

TVS Capital invested in the company through TVS Shriram Growth Fund III (Rs 200 crore). TVS Capital has invested about Rs 3,500 crore in more than 30 companies. “By 2025, we expect to deploy Fund III and launch Fund IV fully. Our focus will be on financial and business services,” he said.

“We need to go beyond urban areas regarding insurance penetration in the country. To achieve our goal of democratising insurance for the public, we are expanding our reach and will continue to build our technology-based solutions and empowered advisors so that they can serve every village and district in India by the end of this year,” said Agrawal, CEO and co-founder of InsuranceDekho.

Nearly 85% of existing insurance premiums in India are concentrated in metro and first-tier cities. InsuranceDekho aims to change that. As part of its mission to provide insurance services nationwide, InsuranceDekho generates 82% of its premiums from Tier 2 and above regions. It exists in more than 1,300 towns and cities.

InsuranceDekho aims to have over 2 lakh insurance advisors on its platform by the end of this year. It works with most insurance providers and has direct integration with 46 insurance companies across India, offering more than 380 products.