(Roadzen founder Rohan Malhotra rings the bell at Nasdaq on Sept. 22. and CEO Image source: Nasdaq.com.)
Roadzen (New York), a global InsurTech that uses advanced AI to power auto insurance technology solutions, has completed a previously announced business combination with Vahanna Tech Edge Acquisition I Corp., a special purpose acquisition company, which was approved at the extraordinary general meeting of Vahanna shareholders on August 25, 2023. The combined company will operate under the name Roadzen Inc., and its ordinary shares and warrants are expected to commence trading on Nasdaq today, according to a statement from the company.
Rohan Malhotra, Founder and CEO, Roadzen.
“Going public is a pivotal moment in Roadzen’s journey, yet it’s merely one milestone in our mission to deliver simpler, smarter and safer insurance to drivers globally,” comments Rohan Malhotra, founder and CEO, Roadzen. “We’re incredibly excited about the transformative potential of AI in reshaping the $800 billion auto insurance market and are going to be unwavering in our focus to build Roadzen as the leader at the intersection of AI, mobility and insurance.”
Founded in New Delhi, Roadzen reports that it has achieved a significant milestone by securing a pre-money equity value of $683 million. Roadzen made its debut on Nasdaq Sept. 22, with its ordinary shares trading on the Nasdaq Global Market under the symbol “RDZN” and its warrants trading on the Nasdaq Capital Market under the symbol “RDZNW.”
Roadzen provides AI-powered insurance technology solutions aimed at helping insurers improve customer experience, reduce fraud, and make better underwriting decisions. The company’s solutions are used by over 90 enterprise customers including major global insurers, fleets and carmakers in the U.S., U.K., continental Europe and India. Roadzen has strategically partnered with global automotive players, including Mercedes, Audi, Volvo-Eicher, Mitsubishi, Skoda, Seat, Renault, and Dacia, major insurers such as Axa, Societe Generale, and Arch, and fleet companies such as CJ Darcl. In addition to these collaborations, Roadzen serves an extensive customer base of over 2,600 smaller agents and fleets. The vendor notes that these partnerships and its diverse customer portfolio provide Roadzen with substantial opportunities for upselling and cross selling its innovative products and services.
Roadzen reports that it has achieved five-fold revenue growth over the last two years, growing its revenues from $13.5 million in FY 2021 to $58.6 million (proforma) in FY 2023.
Steve Carlson, Chairman, Roadzen.
Roadzen says it expects the merger with Vahanna to provide Roadzen with the capital and resources it needs to accelerate its growth and expand its product offerings. The company plans to use the proceeds from the transaction to invest in AI research, expand its sales and marketing efforts, and make strategic acquisitions.
The combined company will continue to be led by Rohan Malhotra and the current Roadzen management team. The Company will be supported by a highly experienced board with extensive technology and capital markets experience.
“Roadzen’s Nasdaq listing signifies our commitment to reshaping the auto insurance industry through advanced AI technology,” says Steve Carlson, Chairman, Roadzen. “Positioned at the forefront of the evolving landscape of connected, electrified, and autonomous mobility, we are poised to redefine in-vehicle experiences across identity, payments, logistics, and insurance.”
Vinode Ramgopal, Chairman, Vahanna LLC.
Significant Runway for Growth
“Roadzen is truly one of the rare InsurTech platforms leveraging applied AI, telematics and computer vision to revolutionize the legacy auto insurance industry, which is plagued by rising costs and soaring premiums,” comments Vinode Ramgopal, Chairman of Vahanna’s sponsor, Vahanna LLC. “In today’s inflationary environment, better underwriting and claims processing, coupled with lowering costs for insurers and ultimately consumers, provide a significant runway for Roadzen’s growth in the years ahead.”
The global automobile insurance market, valued at $817 billion in 2022, is projected to grow rapidly at a robust CAGR of 7.1 percent. Roadzen, on the forefront of this evolving landscape, is positioned to redefine in-vehicle experiences, encompassing identity, payments, logistics, and insurance, amid a global shift towards connected, electrified, and autonomous mobility.
