Online insurance aggregator and seller Policybazaar has raised Rs. 25 crore in Series B funding from investors including Inventus Capital and others (via). According to a Bombay Stock Exchange filing, Info Edge (India) Ltd has co-invested an additional amount of Rs.2.5 crore in Etechaces Marketing, which runs PolicyBazaar
With this, the company has raised a total of ~$21 million (Rs.105 crore) across four rounds of investments from Intel Capital, Info Edge and Inventus Capital. The Gurgaon based company would use raised capital for strengthening its brand and enhancing its platform and customer service.
Info Edge, one of the early investor in the company invested total of Rs. 32.5 crore, and owns about 32% stake in Etechaces. In 2012, Policybazaar had started selling policies online as it got the required approvals. The approval from Insurance Regulatory and Development Authority (IRDA) was a significant milestone for Policybazaar as it became a recognised and approved platform to sell insurance policies directly to consumers.
The overall growth registered by startups in online aggregation is though not encouraging; however Policybazaar registered phenomenal 200% growth over the past two years. Currently, 70% sale of overall online insurance happens through Policybazaar. In online insurance lead generation segment where insurance aggregators sell lead to insurers, Policybazaar claims to drive 4 out of every 5 leads (via internet) in India.
By 2015, the online insurance industry is expected to grab 25-30% of the overall insurance market, out of 50-60 % of volume would be dominated by third party aggregators.