InsuranceDekho, RenewBuy Near Merger To Form India’s Second-largest Insurance Aggregator

InsuranceDekho, backed by TVS Capital Funds and Investcorp, is reportedly close to finalising a merger with its smaller competitor, RenewBuy, in a cash-and-stock transaction. This deal would position the combined entity as India’s second-largest insurance aggregator by value, trailing only PolicyBazaar, which went public in 2021.

Valued at over Rs 8,000 crore, the newly formed company is expected to seek further funding before considering a public listing. According to industry sources, term sheets have been issued, though specific deal details are still under negotiation. The merger would value RenewBuy around Rs 3,000 crore, while InsuranceDekho’s valuation exceeds Rs 5,000 crore. As part of the transaction, some early investors in RenewBuy are likely to sell portions of their stakes.

The merger comes at a time of rapid growth in India’s insurance sector, currently the world’s fifth-largest life insurance market and projected to reach USD 222 billion by 2026 with an annual growth rate of 32 to 34 per cent, according to the International Brand Equity Foundation.

InsuranceDekho was previously in talks to raise USD 150 million in June through a mix of primary and secondary transactions, facilitated by Avendus. With the merger in sight, this funding round will now be conducted under the merged entity. This follows InsuranceDekho’s successful USD 60 million Series B funding a year ago, which valued the company at USD 630 million and supported its acquisition strategy, technology advancements, and marketing initiatives, as well as new ventures like reinsurance.