An online insurance distribution platform Coverfox.com has secured an undisclosed amount of funding led by N.R. Narayan Murthy’s private investment firm Catamaran Ventures. Catamaran is an evergreen domestic investment firm with interests joint venture partnerships and public market investing. This funding is in addition to the earlier rounds in which start-up had secured $2 million in Series A followed by $12 million from Accel US, Accel India and SAIF Partners. The venture plans to utilise this funding to further strengthen and grow its online insurance comparison and sales business.
Commenting on the investment, Abishek Laxminarayan, Investment Director, Catamaran Ventures said, “Catamaran chose to partner with Coverfox because we were attracted to the company's customer-oriented approach to insurance distribution built on top of a robust technology platform. The insurance sector will experience significant growth in India and we believe that the company has the opportunity to lead a meaningful change in how customers view, buy and manage their insurance. We were impressed with the leadership’s team’s technology focus and initial results stand testament to their execution capabilities. We are thrilled to be partners in this journey”.
Founded by IIT Bombay alumni Varun Dua and Devendra Rane, Coverfox provides comparison of plans from top insurance companies, recommendations from experts and a seamless user experience to buy insurance policies on its portal. Further, it also helps in bringing transparency, simplicity and ease to the process of buying insurance in India
“Insurance in India is a largely under-penetrated market (3.9 per cent as against the world average of 6.3 per cent). Buying insurance till now has been largely an offline activity. The industry is at the helm of witnessing a massive shift — from being a seller's market to becoming a buyer's market. Coverfox’s mission is to spearhead this change and make the online process straightforward, simple, quick and transparent for everyone. Our focus on our customers and technology led innovative approach is geared towards enabling our consumers with best-fit choices, information that is easy to comprehend and a safe buying experience. We truly believe everyone should be able to buy insurance just as easily and quickly as they buy air tickets" said Varun Dua, Co-founder, and CEO, Coverfox.
Owned by Glitterbug Technologies, Coverfox has developed proprietary technology based comparison and sales platform, insurance domain expertise and after sales support and claims services to make it a preferred destination for customers to buy and manage insurance policies.
According to the Boston Consulting Group and Google India report, three in every four insurance policies sold will be impacted by digital channels by 2020 at either pre-purchase stage, purchase or renewal stages. The report further states that insurance sales from online channels will touch Rs 15,000 crore by 2020, with overall Internet influenced sales at Rs. 300,000-400,000 crore.
With an aim to become the largest online auto insurance provider within next six month, the Mumbai-based start-up expects its website traffic to double by the end of the year and reach 1 million visitors per month. Currently dealing across the insurance categories of car, bike, health, travel and home, the start-up has witnessed a growth of 500 per cent till now. Further, it is also registering an overall growth of 40-50 per cent month-on-month with exciting contribution from the auto segment.
"The online insurance market is soon set to witness a substantial growth. The future is certainly positive as an increased number of internet users will become a part of this market in the coming years. We value our relationship with Coverfox. Their customer-centric approach to business and good user experience makes them a great partner to work with. With more and more people buying insurance online, we hope to benefit our customers with such robust associations," said Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance.