Amicus Capital, a growth stage investment fund based in the US and co-launched by former Carlyle Group managing director Mahesh Parasuraman, has made one of its first deals with a $9.2 milliond (or Rs 60 crore) investment in online insurance aggregator RenewBuy.
This will be the second fundraising round to be completed by the Gurgaon-based D2C Consulting, the parent company running and operating RenewBuy.
In its first round of funding, the series A, the startup had raised about $2.5 million led by Singapore based Mount Nathan Advisors, in addition to an undisclosed number of high net worth individual investors.
“We are highly impressed with RenewBuy’s differentiated and capital efficient approach to finding a unique digital solution for insurance distribution. We are delighted to make a significant investment into RenewBuy, which is poised for exponential growth,” Mahesh Parasuraman, cofounder and partner at Amicus Capital, had said in a statement, according to a leading media site. Zanskar Advisors was the financial advisor consulting for the deal finalised last week.
This also becomes the first ever investment of theirs that Amicus Capital has gone public about. The investment firm, launched in 2015, also counts Parasuraman and Sunil Theckath Vasudevan, former partner at private equity firm, India Value Fund Advisors, as founding partners.
The fund, has raised approximately $86 million of its intended $200 million corpus, and is exected to announce its final close by end of the current year, and will target investment opportunities in sectors including financial services, consumer, healthcare, and technology sectors.
Amicus will be looking to invest about $8 million and $20 million in its investee companies and picking up controlling stakes in vested companies is definitely on the cards.
RenewBuy was founded by Balachander Sekhar and Indraneel Chatterjee, both of whom worked at insurance powerhouse MetLife. RenewBuy’s competition is market leader PolicyBazaar, Coverfox and EasyPolicy to name a fewand all of these companies have raised considerable amounts of investments in the last year.
For example, PolicyBazaar closed a Rs 500 crore funding round, led by global asset management firm Wellington Management, which valued the company at about half a billion dollars.
RenewBuy has reportedly crossed annualised insurance premiums of over Rs 100 crore, and claims to have over 7,000 insurance agents using its platform.
“Given the size of the market, we see huge scope for continued growth and it was important to partner with a strong institutional partner like Amicus Capital who understands our category space and shares the same vision on how to grow the business,” Sekhar had told a leading daily news outlet.
At present RenewBuy is aiming at selling more and more motor insurance but will be expanding to sell insurance in the health, accident and life categories as well.
“RenewBuy’s unique digital agent model has delivered a sharp month-on-month growth in the last two years to become one of the leading digital insurance aggregators,” the leading daily reports Sekhar as saying.