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WestBridge Capital increased its stake in Star Health Insurance with a $12 million investment during the first half of this financial year.
Context: the move aligns with WestBridge’s bigger aim to foray into the insurance game. The company is coming up with its own general insurance venture called Kiwi. It has already filed papers for regulatory approval with Insurance Regulatory Development Authority (IRDAI) for the same.
WestBridge is a private equity firm that provides purpose-driven capital to entrepreneurs and manages over $8 billion worth of assets in India.
Star Health is a private health insurer, offering health, accident, and travel insurance, in partnership with multiple hospitals to thousands of employees.
Background: the company had first backed Star Health over a decade ago and partially exited during its IPO in 2021. With this investment, WestBridge wants to rebuild its stake in the company.
Big picture: India’s insurance market is slated to grow at the rate of 9.3%, mainly driven by personal accident and health (PA&H), motor, and property insurance lines.
By partnering with an established health insurer like Star Health, the company can tap into its existing market and strengthen its foothold.
