Highlights
| Issue Size – 5,80,70,398 shares | Issue Open/Close – 19 June / 23 June, 2026 |
| Price Band (Rs.) 144 – 152 | Issue Size (Rs.) ~ 8,830 mn |
| Face Value (Rs) – 1 | Lot Size (shares) – 98 |
Turtlemint Fintech Solutions Limited (TFSL) is a holding company of Turtlemint Insurance Broking Services Private Limited (TIB) and Turtlemint Mutual Funds Distributors Private Limited (TMF), incorporated on 2015. The company is a tech-enabled insurance distribution platform that connects customers, insurance advisors and insurers and first to adopt the point-of-sale person (PoSP) distribution model with largest certified PoSP network.
Since insurance is regulated business and require certification to distribute insurance products, TFSL onboarded and empowered a large and geographically diversified base of 631,885 Digital Partners, including 507,124 PoSPs, who have completed the mandatory training in accordance with applicable IRDAI regulations, including the Guidelines on Point of Sales Person – Non-Life & Health Insurer.
The traditional setup features fragmented distribution and uncoordinated, agent-led sales. In contrast, TFSL phygital approach provides structure, scalability and efficiency by leveraging technology as an enabler to support, rather than replace, agents. Through their integrated platform, customers benefit from access to a broad selection of insurance products, as well as subject matter expert guidance from their Digital Partners.
Out of the total proceeds of Rs. 8,830 mn from the offer, ~Rs. 256 mn would go towards cloud and server related infrastructure expenditure, Rs. 1,930 mn would go towards salary of tech team, Rs. 390 mn will be spent on marketing, Rs. 1,717 mn would go towards certain expenditure and investment in subsidiaries, ~Rs. 2,316 mn would be use for Funding inorganic growth through unidentified acquisitions and strategic initiatives and general corporate purposes while ~Rs. 2,220 mn would go towards existing selling shareholders of the company.
Key Highlights
- The total addressable market (TAM) for digital distribution of retail insurance in India, primarily across motor, retail health and retail life insurance, is estimated at ~Rs. 3.1 trillion (USD 36.7 bn) in FY25 and is projected to grow at 11-13 pct CAGR, reaching Rs. 5.3-5.8 trillion (USD 62-68 bn) by FY30. Broker-led distribution, enabled by digital platforms and POSP models, is expected to drive Rs. 3.1-3.3 trillion (USD 36-39 bn) by FY30.
- TFSL have established a significant presence in B30+ (Beyond 30) and 75.13 pct of their platform premium distributed sold comes from B30+ markets. Further, B30+ markets are expected to contribute significantly to insurance growth, accounting for 45– 54 pct of total GDPI from motor insurance with a CAGR of 14-17 pct, 37-43 pct of health insurance GDPI with CAGR of 17-19 pct and 67-75 pct of total life new business GDPI with CAGR of 10-11 between FY25 and FY30.
- TFSL focus on user friendly platform, transparent payout structures and accessible training resources has contributed to consistent growth in both the scale and productivity of their distribution network. They intend to continue investing in the expansion of their digital partner network by onboarding new individuals, deepening engagement with existing Digital Partners and enabling them through ongoing learning and support initiatives.
- The company’s core strategies include (i) Continue to deepen penetration and scale insurance distribution in B30+ markets through expanding their digital partner network (ii) Introducing new insurance products and adding other financial products to become one stop shop for all financial needs of customers (iii) Continue to leverage technology and AI to drive scalable growth and improve operational efficiency (iv) Enhance capabilities through strategic investments and acquisitions (v) Invest into branding efforts across product lines.
- Sales of the company has grown by 26 pct CAGR in over FY23-25. Adjusted EBITDA loss and net loss came down to Rs. 1,760 mn and Rs. 1,941 mn in FY25 from EBITDA loss of Rs. 3,058 mn and Net loss of Rs. 2,882 mn in FY23 while post-acquisition proforma sales grew by 14 pct CAGR over FY23-25. Proforma adjusted EBITDA loss came down to Rs. 1,863 mn in FY25 from proforma adjusted EBITDA loss of Rs. 2,922 mn and proforma net loss for FY25 stood at Rs. 2,026 mn.
Key Risk
- TFSL derived almost all their sales from commissions, rewards and fees received from Insurer Partners and other financial service providers. Any reduction in these fee rates may have an adverse effect on their business.
- TFSL depend heavily on their Digital Partners and incur significant costs in recruiting, activating, managing and retaining them. Cost of acquiring and retaining Digital Partners accounted for 77.45 pct of total expenses. Attracting, managing and retaining Digital Partners is critical to TFSL business, and failure to do so in a cost-effective way may have an adverse effect on their business.
- Starting June 2026, the Bima Sugam platform is expected to introduce zero-commission standard insurance products. Thereby increasing competition for TFSL and likely add dent on sales.
Financial Performance
| Particulars | FY23 | FY24 | FY25 | 9MFY25 | 9MFY26 |
| Sales (Rs. mn) | 4,199 | 786 | 6,627 | 4,111 | 7,411 |
| Adjusted EBITDA (Rs. mn) | -3,058 | -1,987 | -1,766 | -1,432 | -1,083 |
| Adjusted EBITDA Margin (%) | -72.8% | -252.7% | -26.6% | -34.8% | -14.6% |
| Profit/Loss (Rs. mn) | -2,882 | -1,933 | -1,941 | -1,547 | -1,874 |
| Particulars | FY23 | FY24 | FY25 |
| Proforma sales (Rs. mn) | 5,380 | 5,642 | 7,003 |
| Proforma Adjusted EBITDA (Rs. mn) | -2,922 | -1,821 | -1,863 |
| Proforma Adjusted EBITDA Margin (%) | -54.3% | -32.3% | -26.6% |
| Proforma Profit/Loss (Rs. mn) | -2,838 | -1,870 | -2,026 |
Peer Comparison based on FY25 Financials
| Particulars | PB Fintech | Turtlemint |
| Platform Premium (Rs. mn) | 2,34,860 | 29,459 |
| Sales (Rs. mn) | 49,772 | 6,627 |
| Adjusted EBITDA (Rs. mn) | 3,330 | -1,766 |
| Adjusted EBITDA Margin (%) | 6.7% | -26.6% |
| Profit/Loss (Rs. mn) | 3,532 | -1,941 |
Valuation
Turtlemint’ tech-enabled insurance distribution platform connects customers, insurance advisors & insurers and first to adopt the PoSP distribution model with largest certified PoSP network. India’s insurance distribution landscape is rapidly evolving, driven by proactive regulatory reforms and the accelerated digital adoption. Insurance distribution in India has evolved significantly- from traditional agent networks and bancassurance to digital brokers and now, tech-enabled assisted models, all of which are predominantly led by intermediaries assisting customers. The POSP model represents a pivotal step in this evolution, combining local trust with digital infrastructure to servicing to customers. However, regulatory pressure and curb on insurance commissions likely to weigh on future growth outlook. At the current market price of Rs. 152, the issue is priced at a P/S of 4.7x its FY26 annualised sales. The issue appears to be fully priced. One can avoid this issue.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
