Roadzen Inc. (Nasdaq: RDZN) (“Roadzen” or the “Company”), a global leader in AI at the convergence of insurance and mobility, today announced binding commitments for INR 40 crores (approximately USD 4.5 million) in equity financing for its India subsidiary, at INR 740 crores (USD 84 million) pre-money valuation on a stand-alone basis. Prime Securities Limited acted as the exclusive Investment Bank for the transaction.
The financing values Roadzen’s India subsidiary — which contributes less than 60% of consolidated revenues — at approximately INR 740 crores (USD 84 million) pre-money, representing a ~25% premium to the Company’s current Nasdaq market capitalization. Dilution at the subsidiary level is limited to ~5%, with Roadzen retaining ~95% ownership. There is no dilution for shareholders at the Nasdaq-listed parent company.
Transaction Highlights
- Pre-money valuation: INR 740 crores (USD 84 million) for the India subsidiary
- Dilution: ~5% at subsidiary level; parent retains ~95% ownership
- Common equity only; no warrants or preferred rights
- Zero dilution at Nasdaq-listed parent
- Total capital raised this quarter: ~INR 80 crores (~USD 9 million) across India subsidiary and parent level, both at premiums to market cap
- Strong investor demand, exceeding initial targets
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 ~1% of GDP. As GDP doubles and insurance penetration moves toward 3% (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 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 — underscoring the Company’s AI leadership in mobility.
“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.”
He added, “The participation of marquee institutional investors underscores conviction in our growth trajectory. We are on very strong footing for the quarters ahead, supported by a world-class shareholder base and our AI leadership.”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.”
