With an aim of growing by 500% in the next financial year by catering to the needs of millennials, Coverfox plans to go global in the next 3 years
- With an annualized revenue of upwards of $25 million, Coverfox is working towards achieving a 500% growth rate in the next financial year.
- While Coverfox focused on motor and
health insuranceinitially, it has eventually expanded its portfolio to include travel and life insurance.
- Coverfox is looking at scaling up volumes by penetrating into the Tier II and Tier III cities.
- It plans to go global in the next 2-3 years.
Mumbai-based insurtech startup Coverfox is aiming big. With an annualized revenue of upwards of $25 million, the startup is working towards achieving a 500% growth rate in the next financial year. And it’s hopeful of achieving this by addressing the needs of the millennials who are well-versed with the digi-tech platform.
Since its launch in 2013, Coverfox has acquired over a million customers and is working towards simplifying the entire process of insurance buying. Coverfox also launched its seller platform Coverdrive in 2017 which was primarily launched as a digital assistant for new insurance agents. In September this year, Coverfox reported that the platform issued close to a million policies across the country and grew by 300% for FY 2018-19.
In a recent conversation with us,
Q) Coverfox was launched in 2013. How has the journey been so far for the platform?
We started with a small team, acquiring one customer at a time and we now have a million customers. We have expanded over the years to cover nearly all cities and states in the country. From the time of inception till date, we have been simplifying the insurance-buying process. We are now one of the most trusted InsurTech platform in which you can compare, buy and manage insurance policies on your own. While using the proprietary technology and algorithm-based platform, the users can easily compare and choose from a variety of plans from top insurers, understand the main features and then buy a policy that suits one’s needs. As a step forward, we also handhold the customers through the tedious claims process. The journey has been exciting, and we are energized to take it to the next level.
Q) What was your primary business idea when you had launched and how has Coverfox evolved since then?
We had the vision to create a digital ecosystem for the distribution of insurance, at the time when insurance wasn't even driven by technology. We realized that in such a tech-deprived ecosystem, the call-centre model was prone to mis-selling, attrition, and lack of a consistent user experience. These issues lead to limited accountability plus immense dissatisfaction amongst customers. Thus, we stayed true to the intention of creating an unbiased online insurance distribution business model and a tech-driven platform with no human error. We have successfully achieved digitization to quite an extent with the bike insurance product. Now 100% of the bike insurance business is unassisted. Also, 80% of the customers insure their two-wheelers under 4 minutes. The objective has always been to make the process of buying and managing insurance fast, simple, transparent and 100% unassisted for the user.
Q) What kind of growth has Coverfox witnessed in the past few years? What rate have you grown at?
We are growing at 4X and have the best InsurTech platform in Asia-Pacific. Coverfox focused on motor and health insurance in the initial days, and eventually expanded its portfolio to include travel and life insurance as well. With heavy investment plans in place on our B2C (Coverfox) and O2O (Coverdrive) platforms, we plan to delve deeper into the existing categories such as health, motor and life, while exploring some newer categories as well. We're the second largest InsurTech platform in India, and the largest one in the O2O space.
Q) Today, a lot of platforms are offering what Coverfox has to offer. How do you differentiate yourself from the clutter?
The online insurance space has a very limited penetration, which is less than 4% in India. However, the penetration rate is growing at a whopping 90%. The current insurance ecosystem is large enough to absorb multiple players. No one has an InsurTech platform like us that simplifies the entire insurance buying process for the end-user with minimal assistance. This is what differentiates us from our competitors.
Q) It’s been more than a year since you launched Coverdrive. What kind of growth, adoption and reception has the platform witnessed?
Coverdrive was launched in September 2017. The platform currently has over 50,000 agents registered across India. It has issued nearly a million policies and has witnessed a 300% growth for FY 2018-19. In fact, over one-third of Coverfox’s total revenue between the time span January 2017 and June 2019 came from our Point of Sale agents. We were able to achieve this milestone by tapping the power of technology.
Q) What kind of revenues have you been getting and what’s the total funding you have raised till now?
We have an annualised revenue of upwards of $25 million. We have raised a funding of $50 million approximately so far and are in the advanced stages of raising another $50 million.
Q) What will your key focus areas be for the next few quarters?
We will scale up whatever we offer, thereby making the journey comfortable and fulfilling for the customer. Our efforts will always be directed towards incorporating and scaling new technology, and solving new problems. We have been working with most insurance companies in the ecosystem and have associated ourselves with a partner who knows technology well and places the user right at the centre of the system. We are running towards creating 100% unassisted online buying journeys for our customers, while completely automating the claims plus endorsement process to reduce the turnaround time. We are looking at scaling up volumes by penetrating into the Tier II and Tier III cities. As of now, we plan to go global in 2-3 years from now.
Q) Going ahead what will be your growth strategy?
We plan to grow by 500% in the next financial year. We want to cater to the needs of the millennials who are very well-versed with the digi-tech platform. We have our customers spread across the major cities of India. We have expanded to approximately 800 cities so far. We are building a long-term business structure that is here to stay. We will just keep simplifying the complex world of insurance for our customers. With 35+ insurers on the platform, we are completely neutral and provide unbiased expert advice to all our customers. Only after careful scanning and thorough comparison does a user choose a product that best suits their requirements. We plan to go the extra mile to insure the last person on this planet! We are looking at building a profitable and sustainable business model, and constantly striving for the best.