Online insurance company Coverfox has raised Series C funding of $ 22 million in the round led by IFC, a member of the World Bank Group; Transamerica; and other existing investors.
The company said that the investment will accelerate Coverfox’s geographic expansion and broaden its product portfolio. Coverfox will use the investment to expand insurance coverage into tier-2 and tier-3 cities and specifically address women’s needs, it said in a statement. It will also accelerate its technology including Coverdrive, which is an Android app which helps insurance agents go digital and grow their businesses. Premanshu Singh, CEO of Coverfox added in a statement that the large portion of the investment would go into improving the user experience by going both horizontal and vertical into each insurance category.
Founded in 2013 by Devendra Rane, Coverfox claims to have integrated with about 35 insurers, providing a total of about 150 policies in motor, life and health insurance.
Coverfox’s previous funding rounds
The company had previously raised $15 million (about Rs 96 crore) from Transamerica, with participation from existing investors last year in June. In April 2015, Coverfox had raised $12 million in its second round of funding from Accel US, and existing investors Accel India and SAIF Partners, who had previously invested $2 million in a series A round of funding in the platform. A few months later, in September 2015, Coverfox had received an undisclosed amount in funding from Narayan Murthy’s private investment firm Catamaran.
Interestingly, Coverfox co-founder Varun Dua, who has since moved on from the company, has founded the digital general insurance company Acko General Insurance, which is backed by Narayan Murthy’s Catamaran Ventures. Acko is also the first insurance company with an online-only policy, which also received the final license from IRDAI in September last year. Paytm too is eyeing the segment. Other rivals in the space are EasyPolicy, Bankbazaar, PolicyBazaar etc.