BankSathi has raised $7.5 million in equity financing rounds and was last valued at $27.5 million in 2022, according to Tracxn.
The transaction is likely to involve a share swap in which BankSathi shareholders will receive shares in InsuranceDekho. ET was unable to ascertain the details of the share exchange ratio.
“This will be a majority transaction and BankSathi will most likely continue to operate as an independent entity focused on distributing consumer lending products,” one of the people said.
The acquisition will enable InsuranceDekho, which operates a huge network of insurance agents in the field, to build capacity in the sale of credit products as well.
E-mails sent to both companies received no response. This would be InsuranceDekho’s third acquisition after buying Gujarat-based insurance distributor IRSS and insurance broker Verak in 2023.
Founded in 2021, BankSathi, an agent-based financial product distribution platform, enables digital sales agents or DSAs and financial advisors to distribute credit and savings products. The startup is based on a social commerce model, but focuses primarily on credit cards and personal loans.
Bengaluru-based BankSathi received a license from the Insurance Regulatory and Development Authority of India in March 2022 to operate as a corporate agent. It claims to be the third largest credit card distributor in India with an annual issuance rate of 360,000 cards as of June 2023. The company’s investors include prominent angel investors such as Cred founder Kunal Shah, Zerodha founder Nithin Kamath, Unacademy CEO Gaurav Munjal and institutional investors such as QED Innovation Labs.
InsuranceDekho has raised over $310 million in multiple rounds of equity financing. The latest was a round of approximately $60 million that closed in October 2023 and raised the startup’s valuation to approximately $750 million. The company’s main investors include Japanese financial services companies Mitsubishi UFJ Financial Group, BNP Paribas Cardif and Beams Fintech.
Ankit Agrawal, CEO of Gurugram-based InsuranceDekho, said in 2023 that the company was looking for acquisition targets.
InsuranceDekho competes with the likes of publicly traded Policybazaar and venture capital-funded Turtlemint.
