Cardekho’s Insurance Arm InsuranceDekho Achieves Profitability, Records INR 86 Cr PAT In FY24

InsuranceDekho, the insurance arm of auto marketplace CarDekho, became profitable in the fiscal year 2023-24 (FY24) after experiencing a multifold increase in sales. The company made a net profit of INR 85.7 crore in the fiscal year under review, compared to a loss of INR 51.6 crore in FY23.

InsuranceDekho was founded in 2017 by Ankit Agrawal, Alok Bhatnagar, Ish Babar, and Sanjeev Gujral. It promises to offer over 380 products from 46 insurance firms in India. It claims to have over 60 lakh customers and a presence in 1,500 locations throughout the country.

Operating revenue increased 670% to INR 743.6 crore in FY24 from INR 96.5 crore the previous year.

Offering insurance brokerage services generated up to 97%, or INR 726.6 Cr, of InsuranceDekho’s operational revenue, with ancillary services accounting for the remaining INR 17 Cr.

Related: InsuranceDekho Earns Composite Broking Licence From IRDAI

The insurtech business raised $60 million in its Series B investment round in October of last year and is reportedly in talks to raise another undisclosed amount.

According to recent rumors, InsuranceDekho is nearing a deal to merge operations with RenewBuy, which may value the consolidated business at $1 billion. While RenewBuy is projected to be valued at roughly INR 3,000 crore, InsuranceDekho will most likely be valued at more over INR 5,000 crore as part of the transaction.

InsuranceDekho, which has investors including TVS Capital Funds, Goldman Sachs Asset Management, and Investocorp, competes with companies such as Go Digit Insurance and PolicyBazaar.

InsuranceDekho’s expenses increased in tandem with its revenue during the fiscal year under review. However, the increase in revenue exceeded the increase in expenses. Total expenses increased by 360% to INR 699.2 crore in FY24, from INR 151.9 crore in the previous fiscal year.

InsuranceDekho spent INR 130.3 crore on employee-related costs in FY24, up from INR 107.05 crore in FY23, a 21.7% increase year on year.

This bucket’s expenditure increased by 3,529% to INR 301.2 Cr during the fiscal year under review, up from INR 8.3 Cr in FY23.

It spent INR 95.82 crore on headcount, rising 466% from INR 16.95 crore in FY23.

Spending in this category increased by 704% to INR 16.1 crore in FY24, up from INR 1.99 crore the previous year.