Insurtech startup Turtlemint taps bankers to raise $200-250 million via IPO

Insurtech startup Turtlemint is in discussions with four bankers to launch an initial public offering (IPO) this year, three people aware of the development said.

The company, backed by leading investors such as Jungle Ventures and Peak XV Partners, is in talks with Motilal Oswal, ICICI Securities, JM Financial and Jefferies to help manage the IPO, one of the three people said. It aims to file draft IPO papers in two months and list on the stock exchanges by October, the person said on the condition of anonymity.

“The company plans to raise $200-250 million through the public issue,” said a second person.

Turtlemint Insurance Services Pvt. Ltd last raised $120 million in April 2022, in a funding round that valued it at around $900 million. The 10-year-old startup helps people easily compare and buy insurance online, and provides tools for insurance advisors to help their clients.

Queries sent to Motilal Oswal, ICICI Securities, JM Financial and Jefferies remained unanswered. Turtlemint declined to comment.

Competition, market mood

Turtlemint, which competes with the likes of InsuranceDekho, PB Fintech in India’s growing insurance technology space, has raised close to $190 million to date. Its 2022 funding round was led by Amansa Capital, Jungle Ventures, and Nexus Venture Partners. Other investors including Vitruvian Partners and Marshall Wace had also participated in the round.

“Given the current market conditions and cautious sentiment around fintech IPOs, it may not be the ideal time to list—unless a company has strong fundamentals, unit economics, and strategic readiness,” said Priyanka Agarwal Chopra, managing partner at IIMA Ventures, an early-stage venture capital firm.

"In Turtlemint’s case, its Bharat-first focus, hybrid distribution model, and supportive regulatory tailwinds in insurance could position it more favourably than many B2C fintechs," she added.

Also read: Indian insurtech startups look overseas as AI reshapes global insurance

Expansion

The development comes at a time when the Mumbai-based Turtlemint is looking to expand beyond insurance, with plans to enter mutual fund distribution, personal loans, and other adjacent financial services, Mint reported in September.

India’s insurtech sector has witnessed heightened competition as many companies, including Turtlemint, that offer software solutions are expanding aggressively into geographies like West Asia, Southeast Asia, and Europe, where insurers are accelerating digital adoption and more willing to pay for advanced tech solutions, Mint reported.

A BCG report from November said that India has over 150 insurtech firms, including nearly 10 unicorns (valued above $1 billion) and soonicorns, (valued between $500 million and $1 billion).

The sector has seen a 12x surge in revenue over the past five years, reaching $750 million, with a combined valuation of $13.6 billion, the report added.

Also read: InsuranceDekho debuts SaaS solutions firm Heph for insurance distributors

In FY24, Turtlemint reported total income of ₹506.5 crore, more than three times the ₹157.2 crore it posted in FY23, according to data reported by Entrackr. It recorded a net profit of ₹6.22 crore in FY24, marginally lower than the ₹6.28 crore in the previous fiscal year.

Founded in 2015 by Dhirendra Mahyavanshi and Anand Prabhdesai, the company offers insurance products through its insurtech platform Turtlemint, mutual fund advisory and financial planning services via Turtlemint Money, and software-as-a-service (SaaS) solutions through its platform Turtlefin.