International Finance Corporation bets on insurance market, backs this startup

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Updated: June 5, 2019 6:53:08 PM

Coverfox competes with unicorn Policybazaar that is reportedly valued at over $1 billion and is backed by Info Edge, Tiger Global Management, Wipro's Aziz Premji office -- Premji Invest and others.

The startup has issued 225 compulsorily convertible preference shares to Aegon and 81 such shares to IFC.

International Finance Corporation (IFC) has backed Mumbai-based insurance marketplace startup Coverfox in a sub-round of Series C funding worth $22 million that the startup raised in around April 2018.

The latest round is called Series C5 in which apart from IFC, Aegon Digital Investments has again participated. The current round is of $7.2 million out of which $5.3 is invested by Aegon and rest by IFC, said regulatory filing sourced from business signals platform Paper.vc.

The startup has issued 225 compulsorily convertible preference shares to Aegon and 81 such shares to IFC, the document showed.

Coverfox appears to be struggling to close a Series D financing round. They’re right now stitching up a Series C5, said Paper.vc. The startup was launched in 2013 by Varun Dua who later in November 2016 launched a general insurance startup — Acko — including car and bike insurance. Acko is backed by Amazon along with Flipkart co-founder Binny Bansal, SAIF Partners, Accel Partners and others.

The startup is currently led by former marketing head at healthtech startup Practo Premanshu Singh as the CEO. The startup has so far raised $41.5 million across three rounds excluding the latest one and counts Narayana Murthy, SAIF Partners, Accel Ventures, NuVentures, among its investors apart from IFC and Aegon.

Coverfox competes with unicorn Policybazaar that is reportedly valued at over $1 billion that offers to compare and choose insurance beyond car and bike including life, health, travel, home, corporate insurance etc. Its investors include Naukri.com’s parent Info Edge, Tiger Global Management, Wipro’s Aziz Premji office — Premji Invest, Inventus Capital, Steadview Capital, Temasek, Chiratae Ventures and True North.

It posted revenue reportedly worth Rs 12.41 crore against loss of Rs 33.74 crore in FY18, up from Rs 6.12 crore revenue against net loss of Rs 31.85 crore in the preceding fiscal year.

India’s insurance market is expected to become $280 billion in size by 2020, as per study by India Brand Equity Foundation.

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