Tuesday, March 9, 2021

InsurTech Platform Riskcovry Raises $5 Million In Series A Funding Led By Omidyar Network India

 


* InsurTech startup with a vision to “enable insurance anywhere” has access to 1 in 3 Indians via nearly 50 distribution partners; will use funding for building new insurance products, invest in data sciences and accelerating technology’s reach across India

Riskcovry, an InsurTech startup that offers a one-stop technology platform for distribution of insurance products, announced a $5 Million Series-A financing round led by Omidyar Network India (ONI).  All existing investors - Bharat Inclusion Seed Fund, Varanium Capital and Better Capital also participated in the round.  Other new participating investors in the round included the Pune-based emerging technology focused VC fund Pentathlon Ventures and Delhi-based DMI Sparkle Fund which invests in FinTech ventures.

This latest funding round comes close on the heels of the pre-series A raise that closed in May 2020, led by Bharat Inclusion Seed Fund, an early stage seed fund. 

Riskcovry enables companies from any industry to offer digital insurance products and services to their end-customers. This saves Riskcovry’s partners time and effort for building technology, teams and processes, while creating a seamless experience to embed insurance products and services within the partner’s user journey. Through its “insurance in a box” value proposition, Riskcovry provides all necessary building blocks for its partners to offer insurance to their customers - products underwritten by prominent insurers, technology to manage customer touch points and digital processes for policy issuance, management and claims -- all under one roof. The company’s Application Programming Interface (API)-first “infrastructure” approach enables faster go-to-market (GTM) for Riskcovry’s partners, enabled by its flexible plug-and-play technology modules.  These modules are specifically designed to allow rapid iteration of insurance products, across multiple distribution channels of partners, to ascertain “channel-product fit”.

The funds raised will help the company invest across all major functions - tech, product, partnerships, data sciences and growth.

“The pandemic was an inflection point for us, with the insurance industry witnessing accelerated digital adoption, similar to the tailwinds that digital payments witnessed post demonetization. In the last fiscal alone we have enabled partners from 10+ industries to distribute insurance digitally - from traditional financial services to new age digital businesses and startups, from traditional retail products to innovative group solutions, from assisted mode via sales-channel automation to completely invisible or bundled-insurance mode.  We will close the current fiscal with more than 200k policies sold by our 50+ enterprise customers powered by our technology. Our goal is to make insurance as ubiquitous as digital payments by powering digitisation across the insurance value chain in India. We believe we can help serve a severely underpenetrated market like India and we’re very excited to partner with Omidyar Network India and all other investors in helping build a more inclusive insurance ecosystem in India,” said the founders in a joint statement.

Commenting on the investment, Treasa Mathew, Director, ONI said, "The vast majority of the next half billion (NHB) consumers and MSMEs still lack access to basic insurance coverages. Hence, they are forced to rely on borrowings to tide over health emergencies, accidents and property damage which could be addressed through insurance. We believe that ‘embedded insurance’ could play a powerful role in creating new channels for insurance access, which will help improve the financial health of the NHB consumers and MSMEs. We are delighted to partner Riskcovry in building the digital rails that will make embedded insurance a reality in India."

“Riskcovry’s API-led approach allows their partners to embed insurance functionality to their process flow and offer relevant, affordable and personalized insurance to their customer base, quickly, and at scale. We have been super impressed with the progress Riskcovry has demonstrated within a short span of time and are thrilled to be joined by global investors such as ONI and Pentathlon to take this journey forward,” added Saras Agarwal, Principal, Bharat Fund.

Today, Riskcovry offers product diversity, innovation, and flexibility with 15+ off-the-shelf insurance products across Life, General, and Health segments, and have insured more than 2 lakh lives in the last 1 year.

The startup was founded in 2018 by Suvendu Prusty, Sorabh Bhandari, Vidya Sridharan and Chiranth Patil. Suvendu and Sorabh have extensive experience in leadership role in pioneering affinity business (bancassurance & alternate distribution) for leading private insurers; Vidya is an enterprise software engineering leader and a two-time startup CTO; Chiranth is a two-time founder who comes from a fintech, strategy & investment background.  Riskcovry’s leadership team also includes Asif CH, Chief Architect, a seasoned technologist who has built scalable systems by leading performance engineering teams at various startups and large tech companies. 

About Riskcovry:

Riskcovry aims to solve India's insurance penetration problem by providing digital infrastructure for any company to offer insurance to their end users.  As a technology platform supporting any insurance distribution use case, Riskcovry is enabling a simple, seamless and secure experience for enterprise customers to start and scale their insurance business.

With its one-stop-shop ‘insurance-in-a-box’ approach, Riskcovry saves its enterprise customers the traditional overhead of building teams, technology and processes. These customers can quickly and easily access Riskcovry’s API and SaaS technology to enable insurance as an offering, and scale to other products and channels.

Riskcovry’s current enterprise customer base spans Banks, FinTechs, eCommerce, Digital, NBFCs, Brokers, BCs, HRTech, HealthTech and Supply-Chain companies, including Future Group’s FuturePay App (FGNG), IIFL Insurance, Glance, ZestMoney etc.

About Omidyar Network India:

Omidyar Network India invests in bold entrepreneurs who help create a meaningful life for every Indian, especially the hundreds of millions of Indians in low-income and lower-middle-income populations, ranging from the poorest among us to the existing middle class. To drive empowerment and social impact at scale, we work with entrepreneurs in the private, nonprofit and public sectors, who are tackling India’s hardest and most chronic problems. We make equity investments in early stage enterprises and provide grants to nonprofits in the areas of Digital Identity, Education, Emerging Tech, Financial Inclusion, Governance & Citizen Engagement, and Property Rights. Omidyar Network India is part of The Omidyar Group, a diverse collection of companies, organizations and initiatives, supported by philanthropists Pam and Pierre Omidyar, founder of eBay.

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