Auto claims insurtech Roadzen launches IPO

Roadzen, an insurtech specializing in responding to auto accidents with automatic claim filings, is launching an IPO on Nasdaq on September 20, using a SPAC arrangement with Vahana Tech Edge, a technology acquisition company.

The use of SPACs by insurtechs for IPO financing had cooled off since peaking in 2021. The valuation for the IPO will be $750 million.

Roadzen, founded in 2015, has expanded its business significantly in the past two years, according to its CEO, Rohan Maholtra. The company operates in the U.S., U.K., western Europe, Southeast Asia, the Middle East and India. Founded in India, U.S. and U.K. operations began three years ago, and 70% of Roadzen’s business is now in those countries and Europe, Maholtra said.

“What we want to do is essentially build the best technology to compete against some of the best tech companies out there, and build a global profile for Roadzen, which I think will be accomplished when we list on the NASDAQ and get access to a deep capital pool,” he said.

Roadzen plans targeted investment in AI technology to enhance its services, and acquisitions of auto insurance brokers with good business models that need updated technology, according to Maholtra.