Faad Network-Backed Gen AI Startup InsurStaq.ai Shuts Operations

Amid the ongoing boom in the generative AI (GenAI) sector in India, Delhi NCR-based generative AI startup InsurStaq.ai has decided to shut its operations.

“After more than a year of building, learning, and growing alongside some of the brightest minds in the insurance industry, we’ve made the difficult decision to 𝐬𝐡𝐮𝐭 𝐝𝐨𝐰𝐧 𝐈𝐧𝐬𝐮𝐫𝐒𝐭𝐚𝐪.𝐚𝐢,” Mayan Kansal, founder of InsurStaq.ai, said in a post on Linkedln.

“We set out to revolutionise GenAI applications for the insurance world and, along the way, built cutting-edge products, achieved enterprise-ready compliance and were recognised as one of the hottest AI startups by media houses and VCs alike,” he added.

However, after facing “some key challenges”, the team decided to wind up InsurStaq.ai.

Inc42 has reached out to Kansal seeking more details on his decision to shut operations. The story will be updated based on the responses.

Founded in 2022, InsurStaq.ai was developing Gen AI infrastructure specifically designed for the insurance industry. Its first product was a sales co-pilot to help insurance professionals search for insurance products, research and check for compliances, or compare multiple products.

It also created customised AI workflows to assist insurance professionals in various use cases such as sales, support, compliance, research, and underwriting.

Last year, early-stage VC fund Faad Network invested in InsurStaq.ai as part of Faad Accelerator Labs ‘FinShastra’.

The development comes at a time when a number of startups have shut operations in recent times due to funding crunch or other challenges.

In July, social learning platform Bluelearn decided to shut operations just after over three years of its launch as the founders realised that it was difficult to build a venture-scale business. The startup would return 70% of the capital it raised to its investors.

Last month, spiritual tech startup My Tirth India also “temporarily” shut operations due to a lack of funds after the demise of its principal shareholder and investor Subrata Roy.

In April, Peak XV Partners-backed digital health platform Nintee announced its closure, pledging to return the remaining capital to investors. Similarly, in March, fintech startup GoldPe ceased operations, citing a lack of sustainable revenue, a flawed business model, and cash flow challenges.

Notably, as many as 15 startups shut down last year.