The agreement, which is almost finished, would give BankSathi's angel investors access to liquidity.
InsuranceDekho, an online insurance broker and aggregator platform, is in talks to acquire a majority stake in BankSathi, as per a report by the Economic Times. A distributor of credit card and personal loans, BankSathi is a platform that is backed by Kotak Securites and LetsVenture.
As per the report, the agreement, which is almost finished, would give BankSathi's angel investors access to liquidity. The agreement is probably going to be a share swap in which shareholders of BankSathi will get ownership of InsuranceDekho. According to Investopedia, a share swap, or “stock swap, is the exchange of one equity-based asset for another and is often associated with the payment for a merger or acquisition.”
Speaking to the Economic Times, a source said, ““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 the acquisition, InsuranceDekho, which already has a large network of insurance agents in the field, will be able to build capabilities around selling credit products as well. InsuranceDekho had made earlier acquisitions as well. In 2023, the company acquired Gujarat-based IRSS. IRSS is an institutional insurance distributor in Gujarat. Prior to this, the company acquired Verak. Based out of Mumbai, insurance distributor network Verak focuses on small and medium enterprises.
In October 2023, InsuranceDekho raised $60 million in Series B funding. The start-up's valuation for the same around that time was $750 million. With the October 2023 capital infusion, which was a combination of debt and equity, the company added new investors, including Yogesh Mahansaria Family Office, the European investment major Eurazeo, the insurer BNP Paribas Cardif, and the Japanese behemoth Mitsubishi UFJ Financial Group, Inc. (MUFG).
Founded in 2017, InsuranceDekho competes with other companies such as PolicyBazar, Turtlemint, and others.