Insurtech co Coverfox turns around, eyes 3x biz in FY23

Mumbai: Online insurance distributor

Coverfox

, which is now controlled by private equity investors led by

Avaana Capital

after the exit of its founders, has recouped revenues and slashed its burn rate by 90%. The company has almost halved monthly expenditure and is pursuing a strategy of embedding its insurtech with partners to gain market share. Coverfox faced an existential crisis two years ago when the founders of the company — CEO Premanshu Singh and its chief technology officer

Devendra Rane

— quit weeks before the country went into a lockdown in March 2020. “We started this year with monthly revenues of Rs 1 crore, but we are ending it with Rs 7.5 crore. It took 21 months to get the revenue back to where it was and reduce the burn from Rs 8 crore a month to Rs 70-80 lakh,” said Coverfox CEO

Sanjib Jha

. In FY22, the company expects to do Rs 40 crore of revenue and aims to triple this to Rs 127 crore in FY23.In the last week of March 2020, Jha — co-founder of Avaana Capital and one of the investors — was brought in to take charge during the crisis. Coverfox ended FY21 with Rs 23 crore of revenues as funds had dried up and Jha undertook a move to change the business model from being a lead-generation platform to a technology company with the capability to simplify insurance purchase and embed its pipeline to various insurers on different digital platforms. The company is also channelling its insurance-buying platforms through a mobile app. It is now generating commission revenues of Rs 7 crore a month, against which it is burning Rs 80 lakh of shareholder funds.