RenewBuy, a Gurgaon-based startup which provides an online auto insurance comparison platform, has raised $1 million in angel funding round, led by Singapore based Mount Nathan Advisors Pte Ltd.
The newly infused capital will be used by the company to further develop its product & technology platform and test various market initiatives.
Founded in April 2016 by Indraneel Chatterjee, Sandeep Nanda, Balachander Sekhar and Devesh Joshi, RenewBuy, with its proprietary technology, seeks the lowest premiums across leading insurance providers and provides customized results.
Along with this, it also offers various other solutions for car and bike owners such as lowest quotes from leading insurance companies, instant policy in less than 2 minutes, free reminder service, digital locker for all documents, servicing, and claim assistance.
Commenting about this, Balachander Sekhar, CEO of the company, said,
Our strong domain expertise, an extremely high energy team and a razor-sharp focus on the auto insurance vertical has led to rapid increase in business volumes in just 8 months since launch. With an incredibly strong policy growth rate, we are poised to close more than INR 100 Mn of premium in April-June ’16.
It has tie-ups with many leading insurance service providers, including Bajaj Allianz, HDFC ERGO, Bharti AXA, Reliance General, and IFFCO Tokio. It claims to have sold more than 500 policies last month and is planning to boost the number to 3,000 by the end of this financial year.
On an average, the company claims to be selling around 3000 policies per month. RenewBuy’s technology enables consumers to find lowest quotes from leading insurers. With such offering, it helps users to save money on renewal premium, that too up to 60%.
It working is quite simple. Once the user fills in a few details, the platform’s backend searches and scans hundreds of policy types and prices from the companies and gives the best results.
This isn’t the first funding round raised by the company. Last year, it had raised $500,000 from Mount Nathan Advisors Pte Ltd. As per some reports, the company was aiming to raise close to $2 million in this round but apparently, it was able to raise only $1 million.
Commenting about the investment, Manish Mahajan, Managing Partner of Havelock Road LLP, an investment entity of Mount Nathan Advisors, said,
RenewBuy’s differentiated business model will continue to outperform the marketing spend-led, high-cost models prevalent in the industry today. Havelock Road will continue to support RenewBuy’s expansion in this high-growth, recession-proof industry.
According to Sekhar, the motor insurance market in India is worth around Rs. 25,000 crore and is mostly dominated by the traditional brick and mortar companies. In the online policies market, it will compete against Policybazaar and Bankbazaar.