Online insurance company Coverfox has raised Series C funding of $22 million. The funding round was led by IFC, a member of the World Bank Group; Transamerica; and other existing investors of the startup.
The newly infused capital will be used by the company to accelerate Coverfox’s geographic expansion and broaden its product portfolio. The startup will also invest to expand insurance coverage into tier-2 and tier-3 cities and specifically address women’s needs.
The company said that it will also accelerate its technology including Coverdrive — an Android app which helps insurance agents go digital and grow their businesses. Premanshu Singh, CEO of Coverfox said 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.
Coverfox was founded in 2013 by Devendra Rane and the company claims to have partnered with about 35 insurers. It currently provides about 150 policies in motor, life and health insurance. Previously, the company had raised $15 million from Transamerica and others in June last year.
Prior to that, the startup had raised around $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 the company’s Series A funding round. The company has also received an undisclosed amount of funding from Narayan Murthy’s private investment firm Catamaran.
In this space, Coverfox competes against Acko General Insurance, which is founded by the co-founder of Coverfox, Varun Dua. Interestingly, Acko is also funded by Narayan Murthy’s Catamaran Ventures. Apart from Acko, Coverfox also competes against the likes of EasyPolicy, Bankbazaar, PolicyBazaar, among other. India’s leading mobile payments platform Paytm is also eyeing to enter the online insurance segment.