Insurtech Startup Square Insurance Pockets $3 Mn From BizDateUp, Negen Capital, Others

Insurtech startup Square Insurance has raised $3 Mn (around INR 25 Cr) in its Pre-Series A funding round co-led by BizDateUp and Negen Capital. 

The Jaipur-based company will use the fresh funds to ramp up its AI-based insurance platform, building tech stack for cattle insurance and developing customised micro-insurance products.

Square Insurance’s founder Rakesh Kumar said, “This funding will enable us to enhance our offerings and extend our reach into new markets, particularly in rural areas where insurance protection is crucial.”

Founded in 2017 by Kumar, Square Insurance offers life and general insurance services across 20 states. It claims to have a network of over 25,000 channel partners and a dedicated team of more than 350 employees.

“Square Insurance’s commitment to using technology to make insurance more accessible aligns perfectly with our vision of supporting innovative startups that make a real-world impact,” said Bizdateup cofounder Meet Jain. 

The startup competes against the likes of InsuranceDekho, Go Digit, Acko and Policybazaar among others in the insurance segment. 

Recently, the insurtech space has been witnessing a lot of developments.

For instance Aeries Financial Technologies, which runs AI-led fintech startup CASHe, bought Hyderabad-based Centcart Insurance Broking Services, marking its foray into the insurance broking vertical.

It is pertinent to note the Ministry of Agriculture is reportedly planning to rope in insurance brokers to increase the penetration of its crop insurance scheme, Pradhan Mantri Fasal Bima Yojana (PMFBY), starting this year.

In May last year, the IRDAI asked insurance companies to lay down social media guidelines for their employees under the revised Information and Cyber Security Guidelines, 2023.

IRDAI introduced sweeping, detailed guidelines for how insurance employees should use social media. These guidelines are set to impact the many insurtech startups in India such as ACKO, Go Digit, Plum, InsuranceDekho and others.

As per an Inc42 report, the homegrown insurtech sector is expected to grow to a market size of $307 Bn by 2030.