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NEW YORK - Roadzen Inc. (Nasdaq:RDZN), an AI-focused insurance and mobility company with a market capitalization of $85.9 million, announced Tuesday it has secured a mandate to serve as Managing General Agent for one of the world’s top five automakers’ insurance program in a major European market. According to InvestingPro analysis, the company appears undervalued at current trading levels.
The partnership represents over $20 million in annual gross written premiums, according to a company press release. Roadzen will manage administration, claims, and payments for the automaker’s insurance operations, earning fees expected to contribute more than 15% of gross written premiums as recurring revenue. The company currently generates annual revenue of $46.23 million with a healthy gross margin of 61.33%, though InvestingPro data shows it faces near-term profitability challenges.
The automaker selected Roadzen after an extensive evaluation process. The insurance program will be powered by Roadzen’s Global Distribution Network platform and is expected to launch next quarter.
The platform enables policy management, dynamic management information for claims, and payments automation through a digital framework integrated into the automaker’s ecosystem.
"This partnership positions Roadzen to play an even greater role in transforming how insurance is delivered across global mobility ecosystems," said Rohan Malhotra, Founder and CEO of Roadzen.
Roadzen, headquartered in Burlingame, California, provides technology that helps insurers, automakers, and fleets predict and prevent risk, automate claims, and deliver insurance experiences. The company currently operates in 14 countries with over 300 employees across offices in the U.S., U.K., and India.
The announcement represents Roadzen’s expanding role as both a technology and insurance partner to global automakers as vehicles become increasingly connected and carmakers digitize their insurance programs.
In other recent news, Roadzen Inc. has made several significant announcements that could impact investor sentiment. The company reported that its DrivebuddyAI driver-safety platform received validation for compliance with the European Union General Safety Regulation, expanding its regulatory approvals beyond India’s framework. This development comes as the EU prepares to mandate in-cabin driver monitoring in all new vehicles by July 2026. Additionally, Roadzen’s India unit raised $4.5 million in equity financing, valuing the subsidiary at $84 million pre-money, which is a premium over the company’s current Nasdaq market capitalization.
In another financial move, Roadzen entered a $2.25 million private placement with institutional investors, selling over 1.8 million ordinary shares at $1.25 per share. This transaction included Avacara PTE Ltd., a significant shareholder, acquiring 104,000 shares. Furthermore, the company secured $2.25 million in a registered direct offering, selling 1,730,769 shares at $1.30 per share. Maxim Group LLC acted as the sole placement agent for this offering. These developments indicate Roadzen’s continued efforts to strengthen its financial position and expand its technological capabilities.
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