Dai-ichi Life invests $40mn in RenewBuy's holding company
insurance major Dai-ichi Life Holdings has invested $40 million to buy about 11% stake in D2C Insurance Broking, which is the holding company for digital insurance marketplace RenewBuy. This is part of the company's Series D fundraise while the promoters are negotiating with a few other investors to mobilise another $10-$20 million in primary deals. The total fundraising target in this round is between $75 million and $100 million as there would also be secondary deals.
«Da-ichi is coming in as a long-term partner, not merely a financial investor,» RenewBuy's chief executive Balachander Sekhar said. «The fund infusion will provide an opportunity to take RenewBuy's tech platform to other south Asian countries, especially where Dai-ichi has a presence,» he said. Financial investors including Apis Partners LLP of the UK, Lok Capital and IIFL Asset Management hold 68% in the insurance broking firm, with Apis being the largest investor having 20% interest.
Promoters own 25% while angel investors hold the balance 7%, company officials said. It raised a total of $120 million since inception. Founded in 2015, RenewBuy sells third-arty motor, health and life insurance cover mostly in semi-urban and rural pockets.
It sold policies to about 5 million consumers so far with about 70% of its business coming from tier-3 and smaller towns. The company works with more than 40 insurers while the number of its insurance advisors rose to over a lakh. «We are looking to add 50,000 advisors every year in the next four-five years,» Sekhar said, adding that the latest round of capital infusion would also help the marketplace to leverage its distribution network and technology platform to expand locally.
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