InsuranceDekho merger to create new leader in segment, says RenewBuy

The merger between InsuranceDekho and RenewBuy, if realised, has the potential to make the merged entity an undisputed leader in the online insurance distribution space, RenewBuy told Business Standard on Monday.

 

Reports have indicated that InsuranceDekho is in advanced talks to merge with RenewBuy in a cash-and-stock deal, which could value the combined entity at Rs 8,000 crore.

 

Under this arrangement, InsuranceDekho is expected to be valued at Rs 5,000 crore, while RenewBuy may be valued at Rs 3,000 crore.

 

“We are in very early stages of exploratory discussions to create a larger, consolidated entity. If realised, it has the potential to make this establishment an undisputed category leader,” RenewBuy said.

 

 

It added that the company is of the belief that a mega consolidation in this category (online insurance distribution) will be greatly beneficial for all the stakeholders – consumers, agent distributors, insurers, employees, and shareholders. 

 

“As a dominant, growing player in the Insurtech space, we continuously explore various business opportunities and growth avenues alongside multiple industry partners to build a robust organisation,” the company said.

 

However, RenewBuy did not provide any specific details regarding the merger. It stated, “These are just preliminary and exploratory discussions, and the specifics of the deal are far from being finalised. It is too early for us to comment further on this.”

 

InsuranceDekho declined to comment.  

 

Online insurance distributors are intermediaries who provide an interface to the insurance prospects for price comparison and information of products of different insurers and other related matters.

 

Gurugram-based InsuranceDekho is an online insurance comparison platform for individuals. It allows consumers to compare different insurance policies based on their requirements and helps them purchase the most suitable plan. 

 

The TVS Capital Funds backed platform is a brand name owned by Girnar Insurance Brokers Pvt. Ltd. The company currently has tie-ups with 48 insurance companies, offering more than 630 plans on its platform.  

 

RenewBuy, which is also based out of Gurugram, was founded by Balachander Sekhar and Indraneel Chatterjee. It is a fast-growing online distribution platform, which offers a wide choice of life and general insurance policies, together with other financial products.

 

It is backed by Apis Partners and IIFL Asset Management among others.

 

In the online insurance distribution space, Policybazar.com holds the numero uno position. It is the flagship platform of PB Fintech.