SUMMARY
Probus began as an insurance brokerage firm before pivoting to an online insurtech platform that has sold over 1.3 Mn insurance policies
The startup will use the freshly raised capital to fund its geographic expansion
The overall market size of the insurance sector in India is expected to be worth $280 Bn in 2020, growing at a CAGR of 5.3% to reach $327 Bn by 2023
Probus Insurance has raised $6.7 Mn in a Series A funding round led by BlueOrchard Impact Investment Managers.
Founded in 2002 by Rakesh Goyal, Probus began its life as an insurance brokerage firm. The company transitioned into a tech-enabled platform and is licensed by the Insurance Regulatory and Development Authority (IRDA) to offer life and general insurance policies in India. According to the startup, it has sold over 1.3 Mn insurance policies across 14,500 pin codes in FY21.
The startup will utilise the freshly-infused capital towards investing in technology and expanding its presence across many geographies. Probus expects to reach out to more than 10 Mn insurance beneficiaries in the next four years.
“We look forward to working with BlueOrchard’s team to bring world-class innovations to the Indian market. This partnership will help us in realising our dream of increased insurance awareness and penetration across the segments of the population that usually have limited access to insurance and the protection it affords,” said Rakesh Goyal, managing director of Probus Insurance.
According to IBEF, the overall market size of the insurance sector in India is expected to be worth $280 Bn in 2020, growing at a CAGR of 5.3% to reach $327 Bn by 2023. India’s insurance penetration for 4.3% in FY21, with life insurance penetration at 3.2% and non-life insurance penetration at 1%.
The insurance industry recorded a growth rate of 5.8% in the first half of FY22 compared to 0.8% during the same period in the previous year. The market share of private sector companies in the general and health insurance market increased from 47.97% in FY19 to 48.03% in FY20.
Last week, ANI Technologies (Ola) had pumped INR 786.14 Cr (~$104.2 Mn) into Ola Financial Services to expand its insurance business internationally in the UK and ANZ markets. Ola is set to launch country-specific policies to support its mobility business in newer geographies.
In October, Bengaluru-based employee benefits and insurtech startup Pazcare raised $3.5 Mn in a seed funding round led by BEENEXT.
