Narayan Murthy-led Catamaran Ventures has invested an undisclosed amount in Mumbai-based online insurance distribution platform Coverfox, as the latter plans to further strengthen and grow its online insurance comparison and sales business, Coverfox said in a statement. With this move, Coverfox also intends to take on bigger rival PolicyBazaar which is backed by IT czar Azim Premji.
The funding received by Glitterbug Technologies, which powers Coverfox, is in addition to the earlier series A round of $2 million and second round of $12 million raised from Accel US, Accel India and SAIF partners.
Founded in May 2013 by Varun Dua and Devendra Rane, 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.
“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” said Varun Dua, CEO & co-founder of Coverfox.
As per a Boston Consulting Group and Google India report, three in every four insurance policies sold will be impacted by digital channels at either pre-purchase, purchase or renewal stages by 2020. The report also states that insurance sales from online channels will touch Rs 15,000 crore by 2020.
Across the insurance categories of car, bike, health, travel and home insurance that it currently offers, Coverfox claims to be registering an overall growth of 40-50 per cent month on month with increased contribution from the auto segment. For the next six months, the portal will focus on becoming the largest online auto insurance provider, the statement said.
Coverfox also expects its website traffic to double by the end of the year and reach a million visitors per month.
“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,” said Abishek Laxminarayan, Investment Director, Catamaran Ventures.
Catamaran is an investment firm with interests in areas like venture capital, private equity, joint venture partnerships and public market investing. Its portfolio spans FMCG, healthcare, manufacturing, financial services, education, medical devices, media and other sectors.