Insurtech Startup Zopper Raises $75 Mn To Help Insurers Connect With Businesses

Noida-based insurtech startup Zopper has raised $75 Mn in its Series C funding round led by Creaegis. The equity funding round also saw participation from ICICI Venture, Bessemer Venture Partners, and existing investor Blume Ventures. 

Zopper, which operates an insurance-focused SaaS platform, is a decade-old startup founded by Surjendu Kuila and Mayank Gupta. It primarily offers end-to-end tech solutions to insurers and also helps business-to-business (B2B) and business-to-consumer (B2C) organisations sell various types of insurance products. 

Zopper essentially enables large and small-sized ecosystem partners (having a captive customer base) sell insurance policies to their customer base.

Zopper plans to deploy the fresh capital to bolster its SaaS platform and data analytics capabilities, build its data engineering team, invest in business development initiatives and grow inorganically through mergers and acquisitions. The startup will also deploy funds to expand its geographical footprint across the globe. 

Sharing its data utilisation plans, Zopper cofounder Kuila said that the startup aims to offer its clients interesting insurance products and customer insights based on their data.

“We want to help our client base by stitching together another couple of products for their customer base. With this, we get a better share of wallet from our clients, which means another 10% to 15% increase in their bottom line,” Kuila said. 

Speaking about its acquisition plans, Zopper said that it will acquire some early-stage tech startups working in the insurance sector in the next few quarters. 

“These companies should ideally bring complementary skills. They should be assisting and abetting our growth,” Kuila added. 

Zopper has raised $96 Mn to date, including the latest fundraise.

Business Model 

Explaining the startup’s business model, Kuila said Zopper integrates with insurance companies on one hand and connects with ecosystem partners on the other hand. 

It offers the customers of its clients relevant insurance products and levies a fee on its clients on sale of the product. Its revenue depends on various factors and varies from one insurance product to another.

Kuila said that the startup received a boost amidst the Covid-19 pandemic as people became aware of the importance of having life and medical insurance. “COVID pandemic acted as a silver lining for the insurance sector as people started taking life and health more seriously than they used to earlier. People also started reaching out to platforms that were selling digital insurance policies.” 

The pandemic played a very significant role in changing consumers’ psychology and behaviour around insurance, he added. This also helped Zopper, which turned profitable over the last two years.

Its gross written premium (GWP) stood at INR 340 Cr in the financial year 2021-22 (FY22), while its revenue stood at INR 70-75 Cr.  In FY23, Zopper is targeting a GWP of INR 1,000 Cr and a revenue of INR 200 Cr. 

The startup has a presence in 1,200 cities of India and has over 150 clients including Amazon, Ola, Xiaomi, Croma, Hitachi, Equitas Small Finance Bank and Chaitanya, among others.