Pune-based B2B insurance tech startup MetaMorphoSys has announced that it has raised an undisclosed amount of funding from Delhi-based early-stage VC fund Good Capital in a pre-series A round. Rahul Khanna, cofounder and managing partner of venture debt fund Trifecta Capital also participated in the round.
The company will be using the funds primarily for product development in India. It also plans to grow its footprint in other Southeast Asian countries including Hong Kong, Singapore, Indonesia, Vietnam, Philippines and Thailand. Founded in 2016, MetaMorphoSys is a SaaS-based on-demand digital insurance platform that addresses the business and technology challenges of the global insurance industry.
“Insurance companies have realised that startups like MetaMorphoSys can help them compete with new-age insurance companies and at the same time leverage the huge investments already made in existing legacy platforms,” said Rohan Malhotra, managing partner at Good Capital.
MetaMorphoSys founders Amit Naik and Kewal Vargante are both veterans in the insurance space and have previously worked in digital insurance software solutions and services companies such as Majesco (formerly known as Mastek) and C2LBIZ.
“The company is solving a unique problem prevailing in the insurance industry. Its product stack allows legacy insurance businesses to plug into critical products that take time, effort and capital to build,” believes Trifecta’s Khanna.
In addition, the MetaMorphoSys platform supports motor, travel, personal accident, property or home, life, health, low ticket and episodic insurance products. “We offer an end-to-end platform which takes care of the entire value-chain from customer acquisition to engagement and provides a suite of products, including product configurator, underwriting, claims, recommendation and AI/ML sales analytics engine among others,” explained Naik.
Insurance Tech Growing Gradually In India
According to DataLabs, between 2015 and Q1 2019, the total investment in Indian fintech startups was $7.62 Bn with a total deal count of 478. Out of this, the insurance tech contributed 8.03% ($612 Mn), lending tech 25.49% ($1.94 Bn), payments 50.13% ($3.82), so and so forth. The key players that have raised a significant amount of capital include PolicyBazaar, Toffee Insurance, CoverFox, RenewBuy, and Acko among others.
In December last year, Gurugram-based insurtech startup Toffee Insurance raised $5.5 Mn in a Series A funding round led by IVM Intersurer, Omidyar Network, Flourish Ventures, Accion Venture Lab and Kalaari Capital. Bengaluru-based insurtech startup Digit Insurance had said that it is in talks to raise $80 Mn to $100 Mn from TVS Capital Funds, A91 Partners and Faering Capital.
As markets globally look to go beyond the challenges from the Covid-19 pandemic, it becomes crucial for insurance companies to innovate, digitise and leverage technology to work with new and existing partners to underwrite claims, develop customised products that suit the present-day market requirement much faster and in a seamless manner.
In India, digital insurance has witnessed a penetration of less than 4%. However, in the last few years, the penetration has been growing rapidly at about 90% amid high customer acquisition costs and heavy regulations. With Covid-19, the market is set to explode, as individuals and businesses are looking for customisable products that suit their particular needs.
Update: May 4, 2020 | 16:00
An earlier version of this article erroneously mentioned Good Capital as a US fund, it has been updated to clarify that it is Delhi-based. We apologise for the mistake.