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InsuranceDekho to Acquire Majority Stake in Credit Card Distributor BankSathi

SUMMARY

Insurance marketplace InsuranceDekho is acquiring a majority stake in BankSathi, a credit card and personal loan distributor. This deal allows InsuranceDekho to enter the credit product market and offer a wider range of financial products to its customers. BankSathi will likely continue operating independently.

This is InsuranceDekho's third acquisition in 2023, following purchases of insurance distributors IRSS and Verak. InsuranceDekho has a valuation of around $750 million and competes with Policybazaar and Turtlemint in the financial product distribution space.

InsuranceDekho, a leading insurance marketplace, is poised to acquire a majority stake in BankSathi, a credit card and personal loan distributor. This strategic move signifies InsuranceDekho's expansion beyond insurance and strengthens its financial product offerings.

Target: BankSathi, a credit card and personal loan distributor backed by Kotak Securities and Lets Venture.
Deal Structure: Majority stake acquisition by InsuranceDekho, possibly through a share swap.
Benefits for BankSathi: Increased reach and liquidity for angel investors.
Benefits for InsuranceDekho: Entry into the credit card and personal loan distribution market, leveraging BankSathi's network and expertise.
InsuranceDekho's Growth: This marks InsuranceDekho's third acquisition in 2023, following acquisitions of insurance distributors IRSS and Verak.

Understanding BankSathi:

Founded: 2021
Focus: Agent-based distribution of credit cards and personal loans through digital sales agents (DSAs) and financial advisors.
Social Commerce Model: Leverages social networks for product distribution.
Accomplishments: Third-largest credit card distributor in India with an annual issuance run rate of 360,000 cards (as of June 2023).
Investors: Prominent angel investors like Kunal Shah (Cred), Nithin Kamath (Zerodha), Gaurav Munjal (Unacademy), and institutional investors like QED Innovation Labs.

InsuranceDekho's Position:

Funding: Raised over $310 million, with a valuation of around $750 million (as of October 2023).
Investors: Major investors include Mitsubishi UFJ Financial Group, BNP Paribas Cardif, and Beams Fintech.
Competition: Policybazaar (listed company) and Turtlemint (venture-funded) are key competitors.

this acquisition strengthens InsuranceDekho's position as a one-stop shop for financial products. By leveraging BankSathi's expertise and network, InsuranceDekho can offer a more comprehensive suite of financial solutions to its customers, potentially gaining a competitive edge in the market.