Roadzen Raises ₹40 Cr for India Subsidiary; Prime Securities Acts as Exclusive Advisor According to Roadzen, the financing values the India subsidiary, which contributes less than 60 per cent of consolidated revenues, at approximately INR 740 crores (USD 84 million) pre-money, representing close to 25 per cent premium to the company's current Nasdaq market capitalization.
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Roadzen Inc., a global company that utilizes AI in insurance and mobility, has announced an equity financing commitment of INR 40 crores for its India subsidiary, at an INR 740 crores (USD 84 million) pre-money valuation on a standalone basis. Prime Securities Limited acted as the exclusive Investment Bank for the transaction.
According to Roadzen, the financing values the India subsidiary, which contributes less than 60 per cent of consolidated revenues, at approximately INR 740 crores (USD 84 million) pre-money, representing close to 25 per cent premium to the company's current Nasdaq market capitalization.
Roadzen's press release said that dilution at the subsidiary level is limited to approximately 5 per cent, with Roadzen retaining close to 95 per cent ownership. There is no dilution for shareholders at the Nasdaq-listed parent company.
The company has raised close to INR 80 crores this quarter across both its India subsidiary and parent level, both at premiums to market cap, and expects strong investor demand, exceeding initial targets.
According to Roadzen, India has emerged as the world's fourth-largest economy and auto market, selling over 40 lakhs (4 million) cars annually. Yet, non-life insurance penetration remains just approximately ~1 per cent of GDP.
As GDP doubles and insurance penetration moves toward 3 per cent in line with larger economies, the auto insurance market could expand eightfold over the next decade.
New regulations, such as AIS-184, are also expected to accelerate the adoption of advanced driver safety systems. Roadzen's DrivebuddyAI, the only validated solution in this segment, is positioned to serve over 10 lakhs (1 million) new commercial vehicles annually.
"India is an incredible growth story for Roadzen, and this raise sets a clear benchmark for one of our most important markets," said Rohan Malhotra, Founder and CEO of Roadzen.
"The India subsidiary's valuation alone implies a benchmark of more than USD 2 per share for the global business, which remains significantly undervalued compared to peers. These financings highlight strong institutional support and reinforce our commitment to protecting shareholder value while driving AI-led growth," said Malhorta.
N Jayakumar, Managing Director - Group CEO of Prime Securities Limited, said, "This transaction validates the intrinsic value of Roadzen's India operations and demonstrates institutional confidence in the Company's leadership and execution. India offers superior valuations for high-growth AI businesses, and Roadzen is exceptionally well-positioned to capitalize on this opportunity."
