In a move that signals further consolidation in the insurance distribution landscape, two distributors-InsuranceDekho and RenewBuy-have signed merger documents through a share swap that will value the merged entity at ₹7,400 crore, multiple people familiar with the matter told ET. Both companies, which count top private equity funds among their backers, are unlisted.

ET had reported in October 2024 that the two are in discussions.

"InsuranceDekho, the insurance marketplace backed by CarDekho, is acquiring insurtech startup RenewBuy in a share-swap deal," said a source. "The deal was signed earlier this week, and submitted to the regulator." All four founders across the two entities are expected to remain with the combined organisation. Ankit Agrawal, founder of InsuranceDekho, is expected to take over as chief executive. As part of the merger, RenewBuy's investors will receive shares in InsuranceDekho in proportion to the relative valuations of the two companies, according to people familiar with the matter.

Once the merger gets regulatory approvals, the combined entity will rank among the top three physical insurance distributors in India by annual premium and merged entity will have a premium book of ₹6,000 crore, a five-fold increase over the base scale of either individual platform. "In insurance distribution space, some players are pursuing inorganic growth to drive scale, unlock cost synergies, and strengthen market share," said Sanjay Doshi, partner, KPMG.

The insurtech ecosystem has seen rapid growth, with more than 150 startups, including 10 unicorns and soonicorns, and more than 45 minicorns, according to a report by Boston Consulting Group. The industry has witnessed a 12-fold revenue surge in the past five years, reaching $750 million in annual revenue, and holds a cumulative valuation of $13.6 billion.

InsuranceDekho, which competes with Policybazaar, is valued at ₹5,400 crore while RenewBuy is valued at ₹1,800 crore, as per the deal discussions. Founded in 2015, RenewBuy focuses on the digital insurance distribution business with a network of over 125,000+ advisors in over 1,500 towns across India.