MobiKwik has been selling sachet size insurance products for a while. Strengthening its play in the insurance distribution segment, it has applied for a corporate agency (composite) licence with the Insurance Regulatory Development Authority (IRDA).
The Sequoia-backed company will start selling full-fledged insurance policies in categories including life, general and health like PolicyBazaar. If MobiKwik gets the licence, it will join the list of companies such as Paytm, PhonePe and Quikr who have been issued such permit by IRDA.
To aggregate insurance products in all classes, MobiKwik has altered its memorandum of association and added to its object clause ” to solicit and procure Insurance business as Corporate Agency(composite).” On the lines of PolicyBazzar, the company will aggregate insurance products of companies such as ICICI Lombard, Reliance, Aditya Birla and others.
It’s worth noting that Bajaj Finance is a significant stakeholder in MobiKwik. Hence, the company is likely to push the Bajaj Allianz Insurance portfolio aggressively. After the addition of insurance, MobiKwik will be a complete provider of financial and wealth management products.
Besides payments, the company also aggregates mutual fund, loans, including other financial products and services. Its rivals – Paytm and PhonePe also offer third parties insurance products.
Further, RoC filings with MCA reveal that the company has picked up a fresh tranche worth Rs 6.34 from Bajaj Finance. MobiKwik has allotted 7,707 CCPS Series E shares at a price of Rs 8,233 each to Baja Finance. This is a fresh tranche of funding in the company after it raised Rs 8.74 crore from New Delhi Television Ltd (NDTV) and Trifecta Capital, about two months ago.
Importantly, this new development would be exciting amidst talks of the company’s aim to go public in the coming years. Mobikwik had recently claimed that its generating operating profit before charging interest, taxes, depreciation and amortization.
Hat tip: paper.vc