IFC To Invest $10mn In Online Insurance Broker Coverfox

International Finance Corporation is set to invest up to $10 million (Rs 64 crore) in online insurance broker Coverfox. Mumbai-based insurance broker operates in the business-to-consumer segment. The funding will help it ramp up its business-to-business-to-consumer segment.

Company will use its network of insurance agents to distribute insurance policies through an app called ‘Coverdrive’ to point-of-sales people, who currently lack appropriate tools to manage their agent business.

Operated by Glitterbug Technologies Pvt. Ltd, Coverfox was founded in 2013 by IIT Bombay graduate Devendra Rane and MICA Ahmedabad alumnus Varun Dua. It has integrated with more than 30 insurers and offers more than 100 policies in motor, life and health insurance. Using its proprietary technology and an algorithm-based platform, users can compare and buy a range of plans across top insurance companies.

Till date, Coverfox has raised an estimated $22 million from New York-based venture fund Transamerica Ventures, Accel Partners and SAIF Partners. Infosys co-founder NR Narayana Murthy’s Catamaran Ventures, Infosys co-founder Senapathy Gopalakrishnan’s Pratithi Investment Trust, Venkatram Krishnan, and Subba Rao of NuVentures are also among its investors.

In its Series C funding round, which was completed in May this year, Glitterbug Technologies secured nearly Rs 49 crore ($7.6 million) in two tranches from new and existing investors. It was also set to raise an additional $10 million from Rajeev Gupta, founder of investment banking firm Arpwood Capital.