The startup has raised $2 Mn in seed funding round led by WaterBridge Ventures along with Blume Ventures, Arali Ventures and Eximius Ventures
BimaKavach will use the funds to develop risk covers of new-age businesses and invest in risk management technology
The startup said that it looks to launch commercial insurance products in association with leading insurance companies of India
Insurtech startup BimaKavach has raised $2 Mn in seed funding round led by WaterBridge Ventures along with Blume Ventures, Arali Ventures and Eximius Ventures.
BimaKavach will use the funds to develop risk covers of new-age businesses and invest in risk management technology. The startup will also deploy funds to scale its business and teams.
“Business insurance is a highly technical and complex product, and the entire buying process from understanding the coverages to claims processing is unorganised and offline. BimaKavach fills this gap by using a digital-first platform and exclusive underwriting models to design bespoke covers for MSMEs,” said Anjali Sosale, partner at WaterBridge Ventures.
Founded in 2021 by Tejas Jain, BimaKavach offers bespoke insurance solutions to business organisations. Its offerings include fidelity, cyber risk, directors and officers, errors and omissions, general liability, and product liability insurance, among others.
“In India, nearly 95 % of businesses are uninsured. Most of these businesses don’t realize that having the right insurance coverage is key to their financial health. Insurance is still treated as a sunk cost or an obstacle rather than a tool for sustained growth. We want to fix commercial insurance from scratch by building a suitable startup and SME-focused insurance product,” said Tejas Jain, founder of BimaKavach.
BimaKavach said that it is looking to launch commercial insurance products in association with leading insurance companies of India. It will be offering these solutions to small and medium-sized businesses and startups.
BimaKavach claims to offer insurance quotes to its customers in five minutes. As per the startup, it is currently automating risk assessment and pricing for commercial risk products.
The insurtech startup’s clientele includes CleverTap, CoinDCX, FinBox, Rama Phosphates, Flexituff Ventures, and Commercial Syn Bags.
According to an Inc42 report, in the fiscal year 2021-22, insurance penetration in the country plunged to 4.2 % from 3.76% in the corresponding fiscal year (FY 2020-21).
Besides, between 2014 and the first quarter of 2022, insurtech startups bagged $1.8 Bn, which is more than 8% of $22 Bn that fintech startups secured cumulatively during the said period.