India: Narayan Murthy-led Catamaran Ventures invests in online insurance platform Coverfox

Visual sourced from Coverfox facebook page

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.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.