Coverfox.com, an online broking firm. has raised USD 22 Mn in a Series C funding from a clutch of investors led by IFC, a member of the World Bank Group; Transamerica; and other existing investors.IFC itself has invested up to $10 million.
Coverfox, one of the largest Insure-tech platform in the country, had previously raised US$ 17 Mn in Series A & B funding together, from SAIF Partners, Accel and NR Narayana Murthy’s private investment arm – Catamaran Ventures.
The investment will accelerate Coverfox’s geographic expansion and broaden its product portfolio.
“India has one of the most underpenetrated insurance markets, with low penetration rates for women and rural populations. By investing in Coverfox, IFC is giving a push to the country's digitization agenda by leveraging technology to deliver insurance products to customers outside metros and to women who are currently underserved,” said Jun Zhang, IFC Country Head for India.
Premanshu Singh, CEO, Coverfox.com commented, “Coverfox is building Asia's best insure-tech platform to help end-users buy any policy without getting spammed by telecallers.The money would be used to strengthen our product/technology capabilities. Further, a large portion of the investment would go into improving the user experience by going both horizontal and vertical into each insurance category. We are very happy to welcome IFC and Transamerica to our family.”
Insurance penetration in rural areas is 35 percent lower than urban areas in India and women’s insurance coverage is 40 percent lower than men. Coverfox will use the investment to expand insurance coverage into tier-2 and tier-3 cities and specifically address women’s needs.
The technology team of Coverfox intend to drive new development and innovation, including turbocharging Coverdrive, an initiative launched in 2017. Aiming to digitize every aspect of insurance selling, Coverfox launched an Android App – ‘Coverdrive’ – last year, which helps insurance agents go digital and grow their businesses. This initiative is targeted towards creating job opportunities for college students, house-wives and unemployed youth in India.
For the financial year 2016-17, Coverfox Insurance Broking Pvt. Ltd saw its revenue double and its losses shrink as it managed to control costs. Gross revenue for 2016-17 jumped to Rs 6.12 crore from Rs 2.64 crore in the previous year. Net loss narrowed to Rs 31.85 crore from Rs 35.07 crore, as total expenses rose marginally to Rs 37.98 crore from Rs 37.71 crore.
Founded in 2013 by Devendra Rane, Coverfox has integrated with more than 35 insurers, and offers more than 150 policies in motor, life and health insurance. Using its proprietary technology and algorithm-based platform, users can compare and buy a range of policies across top insurance companies.