New Delhi: Tech-enabled insurance broking firm SecureNow, which provides commercial insurances to small and medium enterprises (SMEs), is targeting to cross Rs 1,000 crore in annual premium collections by FY25, as it seeks to become the market leader in this segment. The company had sold insurance worth Rs 150 crore in fiscal 2022. Over 30,000 small businesses have bought insurance from the company.
It expects premium collections to reach Rs 250 crore this fiscal. SecureNow also plans to invest in the acquisition of 5-10 mid-sized brokers to scale up its operations, its co-founder Kapil Mehta said. "SecureNow is planning to scale up its business five times over the next three years. Our objective is to cross Rs 1,000 crore in insurance premiums. This will make SecureNow the market leader in insurance for MSMEs," he added.
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Mehta said the material lever of the company's growth will be inorganic investments or M&A and is actively searching for acquisitions. "Organic growth will also continue. The scale has been an issue in insurance broking. Unlike overseas where many brokers are larger than the insurers themselves, most brokers here have remained small. Many insurance brokers do not have access to the private funding markets. In an industry with over 500 insurance brokers perhaps fewer than 10 have raised meaningful amounts of capital," he said.
SecureNow's core business is well funded by three well-respected investors, Elevar, Apis and Charan Singh, the founder of SelectQuote, Mehta noted. When asked about plans to diversify to clients other than MSMEs, Mehta said over 60 per cent of SecureNow's clients have fewer than 20 employees and many of them are single professionals.
"We are expanding our services to larger clients. The main difference between large and small clients is not in the services offered but in the sales process," he said. The micro, small and medium enterprises (MSMEs), he said, will often explore options through digital resources and do not require face-to-face interaction. In larger clients, multiple conversations with different stakeholders are needed for sales closure and sales cycles are longer, he added. (PTI)
