Should long term investors bet on Turtlemint Fintech IPO?

ET Intelligence Group: Turtlemint Fintech Solutions, an insurance distribution platform, plans to raise ₹661 crore through a fresh issue to strengthen its technology infrastructure and meet working capital requirements, and ₹221 crore through an offer for sale. The promoter stake will fall to 14% after the IPO from 17.2%. The low penetration of financial products offer growth opportunity for the company. However, it has reported losses over the past three years as it continues to invest in expanding reach. It operates in a tightly regulated industry and any adverse changes or commission structures may affect growth prospects. Given these factors, investors may wait for a better clarity on financials after listing.

Business
Incorporated in 2015, Turtlemint Fintech Solutions operates a technology platform that connects insurers, digital partners, point of sales persons (PoSPs) and end customers. It distributes a range of products including motor, health and life insurance, along with mutual funds and loans. Insurance distribution contributed about 97% to revenue in the nine months ended December 2025. Turtlemint partners with around 45 insurers, covering nearly three-fourths of the industry, and has issued over 2.1 crore policies between April 2022 and December 2025. It has strengthened presence in smaller cities with nearly 75% of platform premium coming from outside the top 30 cities as of December 2025.

Nearly all of Turtlemint’s revenue comes from commissions, rewards and fees earned from insurers and other financial service providers. Any reduction in commission structures by insurers or the regulator may hit its revenue and profitability.

Financials
Revenue rose to ₹749 crore in the nine months ended December 2025 from ₹693 crore in FY25 and ₹460 crore in FY23. Its platform premium increased to ₹2,946 crore in FY25 from ₹2,215 crore in FY23. Net loss narrowed to ₹194 crore in FY25 from ₹288 crore in FY23. The company continues to burn cash, reporting negative operating cash flow of around ₹216 crore in FY25 as against ₹285 crore in FY23, driven by high customer acquisition and distribution expenses.

Valuation
On a post-IPO basis, the company is valued at a price-to-sales (P/S) multiple of 4.5 times, compared with 11 times of PB Fintech.