Digital insurance marketplace RenewBuy has acquired Bengaluru-based fintech start-up Artivatic.AI, as it looks to scale up business and improve technology solutions to better serve customers in insurance claim settlement, risk assessment and underwriting.
Artivatic.AI is valued at $10 million while acquisition is done by a combination of cash payment and share-swap deals. Promoters of the AI-based start-up have received shares of RenewBuy, according to the chief executives of both firms. The deal was closed in the first week of February.
The acquisition will allow the digital marketplace to extend its technology solutions across the value chain – from sales to underwriting and claim solutions, RenewBuy chief executive Balachander Sekhar told Economictimes. The company will take ownership of Artivatic.AI’s SaaS solutions for insurance, IP and product portfolio.
“We look forward to delivering more and more tech-led solutions for insurance consumers, with the combined tech capabilities,” Sekhar said. “This acquisition has created a platform where our agents could do business anywhere, anytime, making the physical branch redundant.”
Last year around June, RenewBuy had raised $45 million from Apis Partners LLP of the UK, Lok Capital and IIFL Asset Management and announced its plans to use part of the proceeds in improving the technology backbone.
Set up in 2018, Artivatic.AI has been delivering underwriting and claim solutions to several top life and non-life insurers, its chief executive Layak Singh said. It will continue to build intelligent applications in the InsurTech space under its existing brand name. The firm uses artificial intelligence and machine learning to provide solutions for finance, healthcare, and insurance businesses.
“We are looking at a massive business scale up from this acquisition. Partnering with RenewBuy will overnight give us the exposure of reaching out to 3 million consumers and help deliver cutting edge product solutions,” Singh said. Artivatic.AI already has 400 plus APIs and over half a dozen patents, which have been developed with different insurance companies.
Founded in 2015 by Balachander Sekhar and Indraneel Chatterjee, RenewBuy sells third party motor, health and life insurance cover mostly in semi-urban and rural pockets through D2C Insurance Broking. RenewBuy currently has about 70,000 point-of-sales person (POSP) agents and has insured more than three million customers.