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CASE STUDY
IDI, an Israel-based P&C (property and casualty) and life insurance provider

IDI was the first direct-to-consumer insurance company in Israel.

Background:

Prior to Battery’s 2012 investment, IDI had 10+ years of consistent growth in a relatively competitive and insular market. However, direct-to-consumer insurance providers still only made up less than 15% of the total insurance market in Israel—a massive opportunity when compared to similar markets in the U.S. and U.K. with penetration rates of 50% to 70%, respectively.

IDI marketed its insurance products directly to consumers through channels such as the Internet, TV, radio and print, thereby bypassing the traditional channel of insurance agents. This significantly reduced IDI’s sales and marketing expenses, enabling the company to win customers through competitive pricing and retain them due to high-quality, technology-enabled customer service.

Despite being first-to-market and bootstrapped, IDI successfully created this new direct-to-consumer market within the Israel insurance market and was known for industry-leading growth and best-in-class operating metrics.

Given its disruptive go-to-market strategy and differentiated technology platform, Battery was eager to partner with IDI. By highlighting the firm’s unique expertise in both consumer Internet and financial-services investments, as well as its presence in Israel, Battery was able to position itself as the partner of choice for IDI as well.

Battery’s Impact:

  • At the time of Battery’s investment in 2012, digital-acquisition strategies in the Israeli market were still relatively nascent and rapidly evolving. Battery was able to leverage best practices and perspectives gleaned from its global portfolio to advise IDI, providing insights on how to both grow its business and attack legacy incumbents.
  • Battery was also very active in helping IDI with senior-level, executive recruiting.
  • Finally, Battery helped IDI prepare for its IPO process (at the time, Battery’s first portfolio company IPO on a non-U.S. exchange).

Outcome:

IDI completed its IPO on the Tel Aviv Stock Exchange in August of 2013 (TLV: IDIN).

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IDI Direct Insurance Related ARTICLES

The presented case study investment was made in particular economic and market conditions. There can be no assurance that Battery Venture would elect, or be able, to exploit similar opportunities in a similar manner under similar or different economic and market conditions. More generally, there can be no assurances that the Battery vehicles will have comparable investment opportunities in the future. No assumptions should be made that any investments identified above were profitable. It should not be assumed that recommendations made in the future will be profitable or comparable to the portfolio company described in this case study. For a full list of all Battery Ventures investments, please click here.

Details
Focus area
Application Software
INVESTED
2012
STATUS
TASE: IDIN
Location
Petah Tikva, Israel
STAGE
Growth
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