LeapFrog Invests $15M in Partnership with Mahindra to Provide Insurance to Rural...

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Sep 2012
India, September, 27 2012 - LeapFrog’s investment of nearly $15 million will reach millions of people in rural India, enabling them to protect their assets and loans on tractors and vehicles, and thus the livelihoods on which their families depend.

Mahindra Insurance Brokers Ltd., a insurance broker for rural and semi-urban India, has formed a partnership with LeapFrog Investments, an investor focused on financial services for under-served consumers. LeapFrog’s investment of nearly $15 million will reach millions of people in rural India, enabling them to protect their assets and loans on tractors and vehicles, and thus the livelihoods on which their families depend, the company said. The alliance will build the business and have a significant impact on financial inclusion in South Asia, the company added.

Mahindra Insurance Brokers, a wholly-owned subsidiary of Mahindra & Mahindra Financial Services Ltd., is currently valued at approximately $96 million. The investment, subject to necessary regulatory approvals, will give LeapFrog a 15 percent stake in the company and will channel significant capital into the business alongside LeapFrog’s international expertise in areas such as product design and distribution.

Since inception in 2004, Mahindra Insurance Brokers has serviced over 2.5 million people, the vast majority of whom reside in rural or semi-urban areas. LeapFrog and Mahindra Insurance Brokers will partner to grow the business, providing financial safety and springboards to escape poverty at a scale that is unprecedented in India, the companies said.

“Mahindra Finance is one of the largest non-banking financial companies in India and LeapFrog is the world’s largest investor in insurance for the under-served consumer,” said Anand Mahindra, chairman of the Mahindra Group. “This partnership is a perfect alignment between our philosophy of driving positive change and LeapFrog’s socially conscious investment strategy. Together we will provide financial services that protect and enable millions of people to secure their future.”

“Mahindra’s guiding philosophy, Rise, embodies the group’s determination to drive positive change in its customers’ lives. LeapFrog invests in innovative companies that bring critical financial services to the next billion rising consumers,” said Andrew Kuper, president and founder of LeapFrog. “Mahindra’s reach, ethics and ethos make it an ideal partner for us and the Mahindra Insurance Brokers team has an outstanding track record of driving growth, profitability, and impact. We are keen to support the next leap of reach, performance and innovation for this outstanding business.”

“Mahindra Insurance Brokers is playing a significant role in the insurance broking industry in India with a focus on adding value to customers through innovative solutions, superior services and driving positive change in the lives of people. In LeapFrog, we have a strategic partner with world-leading insurance expertise in emerging markets. It is our constant endeavour to add value to our customers through the financial services we offer, and our association with LeapFrog will provide us with an additional platform to touch and transform their lives,” said Bharat Doshi, chairman of Mahindra Finance. “The LeapFrog team’s expertise sets it apart from other investors and collaborators, and will make a profound difference to our shared mission of industry leadership and social impact.”

This is LeapFrog’s second investment in the Indian market in the last 12 months, reinforcing its commitment to financial inclusion in South Asia, the company said. LeapFrog’s investments currently reach over 8 million people across six countries in Africa and Asia.



 

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