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Roadzen harnesses artificial intelligence (AI) to provide insights into driver behavior. In addition to traditional insurers such as AXA, Allianz (ETR:ALVG), and AIG (NYSE:AIG), Roadzen’s services extend to auto manufacturers like Mercedes-Benz (OTC:MBGAF), Audi, BMW (ETR:BMWG), and Volvo (OTC:VLVLY).
For the fiscal year ending March 31, 2023, Roadzen reported revenues of $57 million. Excluding one-time costs related to the SPAC listing, operational losses were approximately $8 million. CEO Rohan Malhotra anticipates revenue to double in fiscal 2024 and expects profitability within the next two quarters.
Auto manufacturers such as Tesla (NASDAQ:TSLA), General Motors (NYSE:GM), Ford (NYSE:F), Toyota (NYSE:TM), and Porsche have also been utilizing their existing data to initiate their own insurance services. The volume of available data is expected to increase as more consumers switch to newer, smarter car models. A McKinsey report suggests that by 2030, about 95% of new vehicles sold worldwide will be internet-connected.
Despite competition from these large players, Roadzen believes its extensive data collection gives it a competitive edge. Roadzen’s doesn’t directly underwrite policies which shields it from risks related to claims and the high cost of acquiring customers.
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