Payment giant in talks with US$100m Indian insurtechJune 4 2019 by Andrew Tjaardstra
Online payment giant Paytm is reportedly in talks to acquire Mumbai-based online insurance aggregator Coverfox for between US$100 million and US$120 million in an all-cash deal.
The Paytm board is in the process of finalising the deal, according to the Economic Times.
Coverfox was founded to “simplify insurance” by Devendra Rane and Varun Dua — who now runs Acko General Insurance — in 2013; Premanshu Singh is chief executive and an investor in the firm.
The firm uses proprietary technology and an algorithm-based platform to link up with over 30 insurers and offers more than 150 health, home, life, motor and travel policies.
Coverfox has proved very popular and has grown quickly and has managed to carry out multiple rounds of fundraising.
Japanese banking giant SoftBank’s Vision Fund is a shareholder in Paytm’s parent One97 Communications and Indian insurtech competitor PolicyBazaar; it could potentially block any agreed deal between Paytm and Coverfox.
When previously investing Jun Zhang, International Financial Corporation (part of World Bank) country head of India, said: “India has one of the most under-penetrated insurance markets, with low penetration rates for women and rural populations. By investing in Coverfox, the IFC is giving a push to the country’s digitisation agenda by leveraging technology to deliver insurance products to customers outside metros and to women who are currently underserved.”
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