The long tedious process and immense paperworks for the used vehicles has always been a problem for most car buyers in India. Recognising market opportunity to solve this problem, Cardekho has entered into a strategic partnership with the Accel/SAIF Partners-backed online insurance platform Coverfox.
Customers buying used cars on its platform can now easily ensure their car at the point of sale as well as renew their insurance policy with the choices of top insurance companies through Coverfox platform.
According to Amit Jain, CEO, Cardekho,
“We intend to create a 360-degree experience for our customers, who choose their car with ease on our website but then have to go through the hassle of traditional insurance rituals to get their vehicle covered. Our partnership with Coverfox will help us create value for our used car dealers and customers alike, by providing them a single-step resolution to all their insurance buying needs.”
Coverfox is an online Insurance Distribution Platform. It recently raised $2 million in Series B funding from Narayan Murthy’s private investment firm Cataraman Ventures. The company aims at making buying and managing insurance simpler, quicker and transparent. Coverfox gives users the ability to compare/ analyse , buy and manage their insurance policies by use of their proprietary technology.
It boast of Insurance domain expertise , great after sales support, smart technology, and clean User Interface along with best rates, no spam and hassle free claims. Coverfox, has currently over 200 plans to choose from. They have association with over 30 insurance companies. The company is also licence by IRDA.
The Platform claims to have achieved a 500 percent growth since its inception, auto segment being the major contributor to the growth. The monthly growth rate is stated to be about 30%- 40%. The company currently deals in car, bike, health, travel and home insurance. Coverfox competes with the likes of Policy Bazar in this segment.
Varun Dua, founder & CEO of Coverfox said,
“The collaboration with Cardekho is a strategic step to enable consumers makes a well considered insurance choice in a quick and credible manner.”
It is noteworthy that the used car market now exceeds the new car market in India and according to an industry survey, for every 100 new cars sold in India, 110 pre-owned cars are sold. The used car market is growing at around 20-25%CAGR and is predicted to grow 4x in the next four years.
Earlier this year, CarDekho raised USD 50 million in a fresh financing round led by China’s Hillhouse Capital, Tybourne Capital and its existing investor venture fund Sequoia Capital. Ratan Tata and HDFC Bank, India’s second largest private bank by assets, have also picked up minority stakes in the classifieds major.
The combined entity of CarDekho, Gaadi.com, and Zigwheels would compete with the likes of Cartrade.com and Carwale.com, besides the horizontal online classifieds services like Quikr and Olx. Quikr Cars is one such vertical the Craigslist-like portal has been pushing through mass media advertising as it looks to shore up revenues.