Last month, an Indian Tech startup went public on the Nasdaq – and literally none of us realized this. Unheard of company, mind boggling numbers.
On 22nd Sept ’23, 8 year old Roadzen went public at a $965M valuation. Here are some details:
(1) Roadzen was founded in 2015 in India (and still maintains a sizeable office in the NCR)
– 400+ employees
– 90 enterprise & 2600 SMB clients
(2) It is a B2B software business focused on the global motor insurance industry 🚗
– Primarily on claims automation
– And, also on vehicle telematics
Note: Would suggest you go to their website to understand their product suite in detail.
(3) Explosive revenue growth driven by M&A strategy 💸
– FY 22 was ~ $13.5M revenue & FY 23 was ~ $58M in revenue
– They have projected ~ $118M in revenue for FY 24
Note: Still an EBITDA negative business (~$10M EBITDA loss)
💡 So here’s the fun part:
(a) They went public via a SPAC transaction sponsored by Vahanna – Roadzen business raised over $200M in cash from this transaction to pursue M&A deals.
(b) Roadzen has a history of M&A transactions within insurance – they bought:
– AXA Assistance in 2018 (India)
– Moonshot Internet in 2019 (France)
– National Automobile Club in 2023 (USA)
(c) Through M&A and other channels, Roadzen has a pipeline of almost $260M in sales
âž¡ Since listing, Roadzen’s stock price has been hammered – the company is valued at ~ $275M right now. However, this is expected since revenue multiples have compressed in US markets since 2021 (down from > 10 times revenue to ~ 6 times revenue).
Nonetheless, Roadzen is a great example of “Build SaaS in India, Sell to the West” ($0 to $300M in 8 years is commendable). Hopeful that they can turn this around over the next few years!