World Bank Groupâs International Finance Commission has announced that it is making an investment of $10 million (about Rs 64 crore) in the Indian online insurance brokerage startup Coverfox. Currently operating within the B2C segment in helping customers choose the right kind of insurance policy, Coverfox will use the funds now raised from IFC to stretch the business in the consumer segment as well.
IFC has also mentioned in its statement that the Mumbai-based company, Glitterbug Technologies that owns this startup has a network of insurance agents who will act as âfeet on streetâ, to canvas and distribute the policies and these agents have been provided an app called âCoverdriveâ which serves as a useful tool in their hands. Coverfox has tied up with 30-odd insurers and can offer polices in all three categories, Life, Health and Motor insurance and over 100 policies can be sourced through their website.
In terms of raising funds for its venture, Coverfox has managed to corner around $22 million till date and the investors include, Transamerica Ventures (NY based venture fund), Accel Partners, SAIF Partners. Catamaran Ventures (floated by Infosysâ Narayana Murthy) Pratithi Investment Trust (of Infosysâ co-founder Senapathy Gopalakrishnan), Venkatram Krishnan, and Subba Rao of NuVentures.
The startup has been trying to increase its revenues and to cut the losses. The last financial year did show signs of it having succeeded in this effort with the gross revenues recording an increase from Rs 2.64 crore to Rs 6.12 crore and losses dropping down from Rs 35.07 crore to Rs 31.85 crore for the corresponding period the previous year.
There have been a few changes at the top management of Coverfox also. Its co-founder, Varun Dua left to start a venture on his own. Pramanshu Singh has since been appointed as the CEO to replace Dua at the helm