Bengaluru-based employee benefits and insurtech startup Pazcare has raised $3.5 Mn (INR 25 Cr) as part of its seed round led by BEENEXT. The funds raised will be used for product development and recruitment.
The round also saw participation from 3one4 Capital and angels investors including Kunal Shah (CRED), Ashneer Grover (BharatPe), Aprameya R (Koo), Zishaan Hayath (Toppr), and existing investors Ashish Hemrajani (BookMyShow) and Haresh Chawla (True North).
Founded in 2020 by Sanchit Malik and Manish Mishra, the startup has so far partnered with 150 employers including Betterplace, Vedantu, WazirX, Payback, Mamaearth, and Toppr.
The company intends to onboard over 500 corporates over the next two quarters, said the insurtech platform in a statement.
In June 2021, the startup had raised an undisclosed amount in a pre-seed round of funding.
“These funds will help propel their growth among new categories of customers, accelerating product development and hiring across all functions,” it said.
Sanchit Malik, the co-founder and CEO of Pazcare said, “Over the next three years, we aim to be a leading full-stack employee benefits marketplace and platform that touches the lives of over 3 million employees.”
According to the company, India has over 1 Mn employers looking to provide benefits such as group term life insurance, health insurance, doctor consultations, accident coverage and other health & financial benefits to their 100 Mn+ employees.
As per an IBEF report, the Indian insurance industry was expected to reach $280 Bn by the end of 2020. The industry is expected to increase by 7– 9% in terms of gross direct premium income by FY22.
The report highlighted that the life insurance industry is expected to increase at a CAGR of 5.3% between 2019 and 2023. The country’s insurance penetration stood at 3.76% in FY20, with life insurance penetration at 2.82% and non-life insurance penetration at 0.94%. In terms of insurance density, India’s overall density stood at US$ 78 in FY20.
The market share of private insurance companies rose from 47.97% in FY19 to 48.03% in FY20. In the life insurance segment, private players held a market share of 33.78% in premium underwritten services in FY20.