Digital insurance aggregator Coverfox has received Rs 30 crore as a fresh infusion from parent Glitterbug Technologies. The proceeds would be likely to streamline things at the company that has been going through a rough patch in the past couple of months.
Coverfox board has appointed Sanjib Kumar Jha, co-founder of private equity firm Avaana Capital, as the interim chief executive officer last month. According to regulatory filings, it has approved a private placement offer dated March 13 to approve allotment of 15,864 equity shares at a share price of Rs 18,910.8 across five tranches.
It’s worth noting that the company’s co-founder and CTO Devendra Rane and its CEO Premanshu Singh had resigned from the company in February. Entrackr had exclusively reported about its aggravating woes in detail in February.
According to the valuation report filed by the company on January 16, Coverfox values its equity at Rs 1733.3 crore.
Coverfox used to be the second-largest player in insurance aggregation space. Despite raising $47 million in risk capital from investors including SAIF, Accel and Transamerica and Catamaran, it has been left far behind when compared to its deep-pocketed rival PolicyBazaar.
Newbies like Turtlemint also grew quickly and grabbed more market share, leaving Coverfox trailing.
The company’s new CEO Jha is the co-founder of private equity fund Avana Capital which is an existing investor at Coverfox. It will be interesting to see how he leverages his experience to turn around the company.
Over the past six-eight months, Coverfox has been looking for a possible acquisition. However, its talks with Paytm, Policybazaar and others didn’t move for some reason.
Varun Dua and Rane founded Coverfox in 2013, but Dua moved away eventually to launch Acko General Insurance in 2016.