Zensar Technologies, which operates Zensar has acquired Cynosure, an insurance-tech company for $33 million. The acquisition which is funded by a mix of internal accruals and external debt is said to help the Zensar to strengthen its grip in the insurance space.
“The acquisition will help us to expand our reach to the US markets and also both the companies will be able to offer more robust integrated solutions combined with the digital transformational and infrastructure capabilities,” said Harsh Goenka, chairman of RPG Enterprises and Zensar Technologies.
Post the acquisition, the Cynosure team will continue to lead the insurance firm for Zensar.
This acquisition is counted as the third one for Zensar in less than 18 months as the company is trying to pivot majority of its business towards digital technologies.
In November 2016, Zensar had acquired Foolproof and three of its subsidiaries for an undisclosed amount. In March 2017, it acquired Keystone, a Bengaluru-based digital supply chain company.
Founded in 2013 by Sid Wadhwa, Anupam Mittra, Hari Kanangi and Anand Upnal, Cynosure focuses on providing Guidewire, a platform which allows insurance companies to integrate insurance practices in a digital way. The company has clocked the revenues of $20 million in 2017.
The Chicago headquartered company has also an offshore development centre in Bengaluru.
Meanwhile, digital payment platform Paytm is all set to get into wealth management and insurance segments. It has already incorporated three new entities – Paytm Money, Paytm Life Insurance Ltd, and Paytm General Insurance Corporation Ltd.
While the first entity was announced two months ago with an initial investment of about $10 million, the last two companies incorporated a month ago
Insurance penetration in India is dismal. According to an Economic Survey 2018 survey, the ratio of premium underwritten in FY17 to the gross domestic product (GDP) — in India is 3.49 per cent. However, it registered about 15-20 per cent rise over previous fiscal.
The development was first reported by ET