Mumbai-based insur-tech firm Riskcovry raises $5 million in Series A funding

Mumbai-based insur-tech startup Riskcovry on Tuesday said it had raised $5 million in Series A financing round led by Omidyar Network India (ONI). Its existing investors Bharat Inclusion Seed Fund, Varanium Capital and Better Capital also participated in the round. The startup also raised funding from Pune-based emerging technology-focused VC fund Pentathlon Ventures and Delhi-based DMI Sparkle Fund, which invests in FinTech ventures.

Riskcovry had raised pre-Series A funding in May last year. The funding was led by Bharat Inclusion. According to the startup, the latest capital will be invested in its core offerings - tech, product, partnerships, data sciences and growth.

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The startup was founded in 2018 by Suvendu Prusty, Sorabh Bhandari, Vidya Sridharan and Chiranth Patil. The insur-tech firm says it currently offers more than 15 off-the-shelf insurance products across life, general, and health segments. The startup adds it has insured more than 2 lakh people in the last year.

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The startup says it aims to address India’s insurance penetration problem by providing digital infrastructure to any company to offer insurance to users. The company also provides API and SaaS technology to enable insurance as an offering. The company caters to various enterprise users, ranging from banks, fintech, e-commerce to supply-chain companies. Some of its top customers are Future Group’s FuturePay App (FGNG), IIFL Insurance, Glance, and ZestMoney.

The insur-tech has emerged as one of the top categories in the startup space in the last couple of years. According to a report, the number of deals bagged by insur-tech startups had grown during the January-July period in 2020. The report further said that eight insur-tech startups bagged $186 million investment during the period, significantly higher than six firms raising $112 million in the same period the previous year. The Covid-19 pandemic is said to have helped drive investors’ interest in these insur-tech startups.