Owing to healthy business growth, RenewBuy is all set to hit the primary market in about two years, according to the company’s co-founder and CEO, Balachander Sekhar.
The digital insurtech company was incorporated in 2015 by Balachander Sekhar and Indraneel Chatterjee. Its primary aim was to curb the insurance demand-supply gap in rural and semi-urban parts of India.
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Founded in 2015, RenewBuy is an app-based digital insurance platform, providing health, life, and motor insurance plans to clients. The company claims to have established a digital presence in more than 600 districts of India.
The partner agents of this company can sell insurance policies offered by leading insurance providers like Bajaj Allianz General Insurance, Digit Insurance, Bharti AXA General Insurance, and more.
The company is a registered broker with the Insurance Regulatory Development Authority of India (IRDAI). It gets income in the form of commissions, depending upon the sale of policies through its agents. It invests funds to obtain advisors and earning balance.
According to a statement by the company’s CEO, RenewBuy is one of the most executively managed companies in the insurance sector. The company’s core executives feature a strong pedigree and previous work experience. As a result, the plan to come up with its IPO was always there.
He further added that the overall growth is not just prevalent in the founding and management team. Rather, RenewBuy is backed by a professionally managed core team featuring heightened governance standards.
Regarding its IPO, Mr. Sekhar mentions that the company is currently 6 years old. It will soon hit the primary market with its initial public offering when it gains 7-8 years of business vintage.
When talking about the insurance industry, he said that a huge majority of the Indian population is still unaware of the term ‘insurance’. Hence, companies still have to incorporate telecalling to brief the customers on this product.
Currently, there are millions of insurance agents, many of whom struggle to sell their products.
The company plans to assist these agents while increasing the insurance penetration in India.
In addition, insurance broker firms like RenewBuy hugely benefited from certain regulatory decisions a few years back. For instance, brokers received permission to hire agents directly.
The company’s CEO is confident about it receiving profits in the coming year. He also dismissed any comments on RenewBuy’s financial performance for FY2020 while specifying a target change. He further explained that the current fiscal focused upon necessitating investments in RenewBuy’s workforce while acknowledging the increased opportunities in India’s insurance sector.
RenewBuy’s revenue increased by 60% to reach Rs. 43.71 crores in FY2020.
RenewBuy witnessed a loss of around Rs. 30.94 crores.
RenewBuy raised around $45 million in a series C-funding round conducted by a UK based private equity fund, Apis Growth Fund II.
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