Online insurance brokerage firm Coverfox has raised about $7 million as a part of Series C round. The first tranche was raised in June last year when the Mumbai-headquartered firm raked in $15 million led by US insurer Transamerica.
The fresh investment round is led by International Finance Corporation (IFC), and Transamerica. It also saw participation from existing investors SAIF Partners, Accel and Catamaran Ventures–the family office of Infosys’ Narayan Murthy, reports TechCrunch.
With the fresh capital infusion, Coverfox plans to double down on growth and aims to expand into India’s tier-two and tier-three cities. Besides, it will also deploy a part of proceeds for Coverdrive–an Android app designed to equip insurance sales staff.
So far, Coverfox primarily focuses on the bike and automobile insurance segment, which contributes over 50 per cent of its overall revenue. It clocked premiums of Rs 140-150 crores for the financial year 2016-17. Besides, it also offers travel, health, ULIP, Life and general insurance.
The company also hinted at four-fold revenue growth over the past year, however, there are no exact figure claims by the insurance platform.
Till date, Coverfox has raised about $50 million from the aforementioned investors. During the last financing round, the valuation of the company soared to $100 million.
It competes with PolicyBazaar Turtlemint, BankBazaar, and EasyPolicy.
In 2016, Coverfox co-founder Varun Dua had launched Acko General Insurance. Dua, later quit as a Coverfox CEO last year to head Acko. It had raised $30 million in seed fund in May 2017 from SAIF Partners, Accel Partner, former Infosys chief executive Kris Gopalakrishnan and Hemendra Kotharo, chairman of DSP Blackrock.
Acko had also applied to the Insurance Regulatory and Development Authority (IRDA) to set up a general insurance company. Recently, cab aggregator Ola had tied up with Acko General Insurance and ICICI Lombard General Insurance to launch its in-trip insurance cover for all its riders.
Despite sharing common investors, Coverfox isn’t working with Acko and there is no any chance of potential consolidation between the two in the coming months, claims the company.