Bengaluru-based insurtech startup Nova Benefits is raising INR 71 Cr in its fresh round of fundings, according to a recent MCA filing accessed by Inc42. Nova Benefits will allot a total of 85,509 Series A Compulsorily Convertible Cumulative Preference Shares (CCPS) each at a premium price for INR 8,293.
In what seems to be Series A round for the startup, the round will be led by US-based SAI Global as it will pump in INR 44 Cr in the startup. The round will also see participation from Bessemer Venture Partners as it will infuse INR 17.96 Cr, along with existing investors Multiply Ventures, AL Trust, Nilkhil Chopra and Vikram Jit Singh Chaatwal, according to the filing. The startup has been reached out for a comment on the fresh funding. The startup will also allot 40 equity shares each at a premium price of INR 8,302.
New round of funding comes immediately after Nova Benefits raised a $1 Mn Seed round led by Multiply Ventures, Better Capital and Bhavin Turakhia-led Titan Capital.
Founded in 2020 by Saransh Garg and Yash Gupta, Nova Benefits is an employee benefits platform focusing primarily on corporate health insurance. The startup claims to help HR professionals by reducing manual work, thus helping them focus on a much more complex task.
Through Nova Benefits platform, employees of an organisation can access their insurance e-cards, look for cashless hospitals and make their claims. The startup further allows priority claims resolution for its clients thus reducing time required for claim settlement.
The startup has a CSAT score, or customer satisfaction score, of 9.6. Some of Nova’s clients include unicorn fantasy sports platform Dream11, ecommerce platform Snapdeal, conversational AI platform Observe.AI, e-bike rental startup Yulu Bikes, among others.
The startup’s web and mobile apps provide team members with a single platform to access their company-sponsored benefits. Companies consult Nova to decide the best health plans while maximising coverages and minimising cost. The startup directly pits against Tiger Global-backed Plum, newly turned unicorn Digit Insurance, Acko among others.
As per an IBEF report, the Indian insurance industry was expected to reach $280 Bn by the end of 2020. The industry is expected to increase by 7% – 9% in terms of gross direct premium income by FY22.
The report highlighted that the life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023. The country’s insurance penetration stood at 3.76% in FY20, with life insurance penetration at 2.82% and non-life insurance penetration at 0.94%. In terms of insurance density, India’s overall density stood at US$ 78 in FY20.
The market share of private insurance companies rose from 47.97% in FY19 to 48.03% in FY20. In the life insurance segment, private players held a market share of 33.78% in premium underwritten services in FY20.