Upstox, a wealth management startup, has ventured into insurance distribution. They announced their initiation with term life insurance on Monday and intend to introduce products in health, motor, and travel segments shortly.
According to Upstox’s statement, HDFC Life is one of the first insurers to collaborate with the Mumbai-based company. They will showcase their term insurance plans on the Upstox platform.
“We are constantly working towards making our platform simple, secure, fast, and intuitive. With the launch of insurance on our platform, we will remain steadfast in our endeavour of helping our users manage their wealth effectively for a secure financial future,” Kavitha Subramanian, cofounder of Upstox, said in the statement.
Upstox provides various financial instruments such as stocks, IPOs, futures and options (F&O), commodities, currencies, fixed deposits, peer-to-peer (P2P) lending, government bonds, non-convertible debentures (NCDs), gold, and insurance.
Previously, the company announced achieving breakeven in FY23, with total revenue surpassing Rs 1,000 crore. They aim for a tenfold increase in the client base over the next five years.
This expansion occurs amidst investments by fintech firms like PhonePe in their insurance sectors.
As per Upstox’s statement, insurance penetration in India is at 4.2%, with many people still relying on traditional and agent-driven methods to buy policies.
Upstox faces competition from wealth management platforms such as Zerodha and Groww.
