[Funding alert] Insuretech startup Coverfox receives Rs 40 Cr investment in ongoing Series C round
Online insurance aggregator platform Coverfox has received Rs 40 crore ($5.79 million) capital infusion from its existing investors as a part of its ongoing Series C funding round. With this investment, the total funding raised by Coverfox reached $58.59 million.
According to the Registrar of Companies (RoC) filings accessed by YourStory, the Mumbai-based company has issued Series C5 compulsorily convertible preference shares (CCPS) to investors such as International Finance Corporation, Aegon Digital Investments, Transamerica Ventures, Accel India, and SAIF Partners.
The filings state that the investment came over a period of four months from March to June.
As part of Series C funding round, the company had last raised $22 million from IFC, a sister organisation of the World Bank Group, as well as Transamerica along with other existing investors in April 2018.
Coverfox planned to use the investment to expand insurance coverage into Tier-II and III cities, diversify its product portfolio, and drive new technology development and innovation.
Founded in 2013 by Devendra Rane, Coverfox has integrated with more than 35 insurers, and claims to offer more than 150 policies in motor, life, and health insurance at present. With its proprietary technology and algorithm-based platform, users can compare and buy a range of policies across top insurance companies.
The company previously raised $17 million in Series A and B funding, from SAIF Partners, Accel, and Catamaran Ventures, NR Narayana Murthy’s private investment arm.
In the insuretech market, Coverfox competes with other players including Turtlemint, BankBazaar, Easypolicy, Acko, PolicyBazaar, and ETInsure.
Turtlemint in January this year had raised $25 million in fresh funding from Sequoia Capital, along with its existing investors Nexus Venture Partners and Blume Ventures. In March, Acko had raised $65 million in its Series C funding from its existing investors along with participation from Flipkart Co-founder Binny Bansal.
Last year, insurance conglomerate PolicyBazaar raised more than $200 million from SoftBank, announcing its entry into the Unicorn club.
(Edited by Saheli Sen Gupta)