BimaPay Nets $2 Mn To Offer Tech-Based Insurance Solutions

Insurtech startup BimaPay has secured $2 Mn (around INR 16.7 Cr) in an undisclosed funding round led by LC Nueva Investment Partners.

The startup plans to deploy the fresh proceeds to expand its footprints in the financial inclusion and insurance ecosystem by leveraging technology. Besides, it also plans to scale up its operations, enhance its technology infrastructure and expand its reach to underserved markets.

Founded by Hanut Mehta, Mohit Gupta and Kapil Garg, BimaPay facilitates digital lending with a real-time process, catering to various use cases aimed at enhancing accessibility and affordability in the insurance sector. It aims to ensure deeper penetration into the country’s financial inclusion ecosystem. 

One of BimaPay’s offerings includes insurance premium financing which provides customers with flexible payment options, to make insurance premiums more manageable and affordable. The startup also supports insurance intermediaries by addressing their day-to-day cash flow requirements. This, according to the startup, enables it to effectively penetrate insurance markets, especially among underserved populations and expand business reach, thus fostering insurance penetration.

Garg said, “This investment reaffirms our commitment to leveraging technology to drive insurance penetration and empower individuals and businesses across India.”

 Adding to this, Mehta and Gupta said, “This funding not only validates our vision but also fuels our determination to revolutionise the insurance industry through innovation and technology. With this infusion of capital, we will accelerate our growth and make a lasting impact on insurance penetration in India.”

BimaPay also claims to offer financing services to hospitals, garages and individual policyholders. As per the startup, it bridges the gap between the approval and receipt of insurance claims, ensuring that policyholders do not bear the financial burden during this period. It empowers individuals and businesses to access insurance services without straining their finances, ultimately promoting a more inclusive and sustainable insurance ecosystem.

Last month, yet another insurtech startup ClaimBuddy bagged $5 Mn funding to strengthen its tech stack, expand workforce and sales network, and shore up product portfolio.

According to Inc42’s State Of Indian Fintech Report Q4 2023, the insurtech segment is expected to reach a market size of $304 Bn+ by 2030 at a 17% CAGR from $87 Bn+ in 2022.