InsuranceDekho to Acquire Majority Stake in Credit Marketplace BankSathi

Insurance aggregator InsuranceDekho is set to acquire a majority stake in BankSathi, a distributor of credit cards and personal loans, according to sources familiar with the matter.

The deal, which is nearing completion, will provide liquidity to BankSathi’s angel investors through a share swap arrangement where the company’s shareholders will receive a stake in InsuranceDekho.

“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,” said one of the sources.

The acquisition will enable InsuranceDekho, which has a large network of insurance agents, to build capabilities around selling credit products as well. This would be InsuranceDekho’s third acquisition after buying out Gujarat-based insurance distributor IRSS and insurance broker Verak in 2023.

Founded in 2021, BankSathi is an agent-based financial products distribution platform that enables digital sales agents and financial advisors to distribute credit and savings products. The startup relies on a social commerce model but focuses primarily on credit cards and personal loans.

InsuranceDekho has raised over $310 million in multiple equity funding rounds, with the latest $60 million round in October 2023 valuing the company at around $750 million. The company counts Japanese financial services major Mitsubishi UFJ Financial Group, BNP Paribas Cardif, and Beams Fintech as its major investors.

InsuranceDekho competes with listed company Policybazaar and venture-funded Turtlemint in the insurance aggregator space.