InsuranceDekho, the online insurance broker and aggregator platform is reportedly in advanced talks to acquire a majority stake in BankSathi, according to a report by the Economic Times.
BankSathi, a distributor of credit cards and personal loans, is backed by Kotak Securities and LetsVenture.
The deal, which is nearing completion, will likely provide liquidity to BankSathi’s angel investors. The transaction is expected to be a share swap, where BankSathi shareholders will receive ownership stakes in InsuranceDekho. A share swap, as defined by Investopedia, is the exchange of one equity-based asset for another and is commonly used in mergers and acquisitions.
A source speaking to the Economic Times stated, “It will be a majority deal, and BankSathi will in all likelihood continue to operate as an independent entity focusing on distributing consumer credit products.”
With this acquisition, InsuranceDekho aims to enhance its capabilities in selling credit products, complementing its existing large network of insurance agents. This follows InsuranceDekho’s previous acquisitions, including Gujarat-based institutional insurance distributor IRSS in 2023 and Mumbai-based insurance distributor network Verak, which focuses on small and medium enterprises.
In October 2023, InsuranceDekho raised $60 million in Series B funding, which valued the startup at approximately $750 million. This funding round, a mix of debt and equity, introduced new investors such as Yogesh Mahansaria Family Office, European investment major Eurazeo, insurer BNP Paribas Cardif, and Japanese financial giant Mitsubishi UFJ Financial Group, Inc. (MUFG).
Founded in 2017, InsuranceDekho competes with other industry players like PolicyBazaar and Turtlemint. The acquisition of BankSathi is expected to bolster InsuranceDekho’s position in the market and expand its product offerings.
