Insurtech firm Roadzen to go public with Vahanna Tech Edge Acquisition I
Insurance technology company Roadzen will merge with Vahanna Tech Edge Acquisition I, a special purpose acquisition company (SPAC), to become a publicly traded entity.
Post-closing, the combined entity will retain its name Roadzen and will trade on Nasdaq.
The deal values Roadzen at a pre-money equity value of around $683 million and is anticipated to provide up to $204 million in cash proceeds.
Roadzen expects use the proceeds from the transaction to accelerate the company’s investment in its sales and growth initiatives and its technology and to pursue additional strategic merger and acquisition (M&A) opportunities.
The insurtech company aims to transform global auto insurance powered by advanced artificial intelligence (AI).
Saurav Adhikari — Vahanna Tech Edge Acquisition I Chairman said: “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 Roadzen Insurance as a Service (IaaS) platform leverages telematics, AI, and computer vision to transform the insurance value chain across underwriting, distribution, and claims.
Insurtech firm Roadzen to go public with Vahanna Tech Edge Acquisition I
Rohan Malhotra — Roadzen Founder and CEO said: “We set out with a bold and ambitious vision – to build the world’s leading technology company at the intersection of insurance and mobility.
“Our team, technology, business strategy and an ecosystem of world-class partners will create significant and strong growth for years to come.”
The completion of the merger is expected during Q2 2023, subject to satisfaction of customary closing conditions.
In 2022, Roadzen entered into acquisition agreements to increase its footprint in the US and UK markets.
Roadzen, with 39 major customers in the insurance and automotive industry, is anticipated to generate around $59 million and $118 million in total consolidated revenue for the financial years ending 31 March 2023 and 2024, respectively.