The insurance arm has been incorporated as a distinct entity under the EMT umbrella and will spearheaded by cofounder and CEO Nishant Pitti The company said that the foray into the insurance space will enable it to diversify its service portfolio and tap into the burgeoning Indian insurance market This comes days after EaseMyTrip’s board approved plans to raise up to INR 1,000 Cr through a preferential issue Online travel aggregator (OTA) EaseMyTrip has announced its foray into the insurtech sector with the launch of its new insurance arm. Called EaseMyTrip Insurance Broker, the new subsidiary will offer insurance brokerage services to Indian customers. In a statement, EMT said that the new venture will create a ‘specialised’ product to solve customer needs.
EaseMyTrip Insurance Broker has been incorporated as a distinct entity under the parent entity. The insurtech vertical will spearheaded by EMT cofounder and chief executive officer (CEO) Nishant Pitti, who will take over as the director of the new arm. As per the company, the foray into the insurance space will enable it to diversify its service portfolio and tap into the burgeoning Indian insurance market.
EaseMyTrip added that the new venture will enable it to create alternate streams of revenue and avenues to increase business operations. “We are elated to announce the launch of EaseMyTrip Insurance Broker Private Limited. This new subsidiary is a major step forward for us as we diversify our services and enter the insurance market.
We aim to offer (a) complete travel ecosystem for our customers and this new addition is a progressive step towards the same,” said EaseMyTrip CEO Nishant Pitti. The public announcement comes just days after EMT informed the bourses that it had floated a new subsidiary to offer insurance brokerage and related services. It then noted that the new entity has been established with an authorised capital and a subscribed capital of INR 75 Lakhs each.
However, EMT has been eyeing entering the insurance space for quite some time now. The plans first surfaced at its annual general meeting (AGM) in August 2022 when the travel tech unicorn approved an amendment to its charter that allowed it to venture into the general insurance arena. Eventually, in May last year, the startup received an in-principle nod from its board to foray into the insurance space .
The insurance foray comes at a time when the travel tech startup has underlined major expansion plans. Earlier this year, the company’s board approved plans to raise up to INR 1,000 Cr through a preferential issue. In addition, EaseMyTrip has also undertaken a slew of acquisitions in the recent past to bolster offerings and diversify product portfolio.
In December 2023, the startup acquired a non-controlling stake of about 13% in Eco Hotels and Resorts in a share swap deal to enter the hotel and hospitality industry. It also received board nod to acquire 51% stake each in three Indian travel companies in July last year, namely Mumbai-based Guideline Travels Holidays, Jammu & Kashmir-based TripShope Travel Technologies, and New Delhi-headquartered Dook Travels. Alongside, the company has also been clocking healthy financial numbers.
It reported a 66% year-on-year (YoY) growth in consolidated net profit to INR 47 Cr in the second quarter of FY24 as against an operating revenue of INR 142 Cr, up 31% YoY. Shares of Easy Trip Planner, the startup’s parent company, closed 3. 25% lower at INR 44.
29 on the BSE on Wednesday (January 10). .
From: inc42
URL: https://inc42.com/buzz/easemytrip-forays-into-insurtech-space-to-diversify-portfolio-create-new-revenue-streams/