Insurtech Roadzen to go public via $965 million SPAC deal

Merger will see combined company listed on Nasdaq

Insurtech Roadzen to go public via $965 million SPAC deal


By Mika Pangilinan

Insurtech firm Roadzen has announced its plan to go public in the United States via a merger with special purpose acquisition company (SPAC) Vahanna Tech Edge Acquisition I Corp - in a deal valued at about US$965 million.

The transaction reflects a pre-money equity value of approximately $683 million for Roadzen, according to a joint statement issued earlier this week, with the combined company expected to be listed on Nasdaq.

Founded in 2015, Roadzen uses advanced AI to provide data that enables insurers to build auto insurance products. The company has grown to $9.8 million in total consolidated revenue for the fiscal year ending March 31, 2022, and is expected to generate around $59 million and $118 million for 2023 and 2024, respectively.

“We set out with a bold and ambitious vision – to build the world’s leading technology company at the intersection of insurance and mobility,” said Rohan Malhotra, Roadzen CEO and co-founder. “We are committed to our long-term vision and believe this is a firm next step in that journey. Our team, technology, business strategy and an ecosystem of world-class partners will create significant and strong growth for years to come. We are thrilled to partner with Vahanna and its incredible team of investors and operators to unlock this growth.”

“Vahanna’s conviction is that technology companies leveraging India’s highly developed tech ecosystem can vault to the global markets accessing capital and resources, to catalyse growth and transform industries,” said Saurav Adhikari, chairman of Vahanna. “Roadzen, with its highly talented management team, AI technology prowess, and sharp focus on auto insurance, provides our investors a unique opportunity to participate in an industry under significant transformation.”

The merger is expected to close during the second quarter of 2023, subject to customary closing conditions. Proceeds of the transaction are expected to fund Roadzen's organic growth initiatives and M&A strategy.

After the deal is completed, existing Roadzen shareholders are expected to own 73.2% of the combined company.

Roadzen has five global offices, including ones in New Delhi and New York. Last year, it signed acquisition agreements to expand further into the US and UK markets.

“We are delighted to sponsor Roadzen’s entry to the public market,” added Vinode Ramgopal, chairman of Vahanna’s sponsor, Vahanna LLC. “It is exemplary of the Vahanna thesis that the next generation of U.S.-Indian technology companies belong on the global public markets, and that SPACs, especially operator-led SPACs, can play a vital role in helping their founders manage public market preparedness. We believe the combination of Vahanna’s institutional bench, in support of Roadzen’s exceptional founder and entrepreneurial vision, promises a new market leader.”

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