Pibit.AI Bags $7 Mn To Scale Its AI-led Underwriting Platform

Insurtech startup Pibit.AI has bagged $7 Mn (about INR 62 Cr) in a Series A funding round led by Stellaris Venture Partners, with participation from existing investors Y Combinator and Arali Ventures. 

The startup plans to deploy the fresh capital to bolster its R&D function, strengthen product development and expand the core capabilities of its CURE platform. Besides, it also plans to expand its advanced risk models, and deeper data partnerships to make its offerings more adaptive to new lines of business and emerging risks. 

Founded in 2020 by IIT-Roorkee alum Akash Agarwal, Pibit.AI offers a AI-powered underwriting platform called CURE (Centralised Underwriting Risk Environment) that automates data ingestion, analysis and risk assessment. 

Besides Cure, its key modules include: 

DocumentCURE: Converts raw and unstructured submissions into structured data and flags gaps or anomalies. 

ClearCURE: Expedites the initial review process by moving raw submissions to a triage stage.

WorkflowCURE: Unifies and streamline underwriting tasks, insights, and collaboration into once central workspace.

ResearchCURE: Gives underwriters clear risk scores and signals to make faster, sharper decisions and improve GWP.

RiskCURE: Assesses each account using portfolio-specific signals for comprehensive risk evaluation.

The startup claims that its product suite is being utilised by multiple insurance carriers like Kinetic, Shephard, Method. Its primary client base is in the US. 

Speaking with Inc42, Agarwal said commercial insurance underwriting remains one of the industry’s toughest processes to automate because it relies on extremely precise, trustworthy data and even small inaccuracies can break the entire workflow.

“Underwriting has been a hard problem to crack for decades because even small data errors can break trust. What we’ve built is a dependable AI layer — advanced models paired with a tightly controlled backend — to ensure underwriters always get clean, reliable data,” he said.

He added that the startup is now doubling down on three areas: strengthening its risk models, scaling its go-to-market through broader distribution, and expanding teams across product, engineering and customer success.

The founder claims CURE platform can speed up underwriting cycles by 85%, lift gross written premium per underwriter by 32% and improve loss ratios by up to 700 bps

Prior to the funding round, Pibit.AI was part of the Y Combinator’s Winter Batch 2021. It also raised $500K in a seed funding round in 2023.

The development comes at a time when AI is rapidly reshaping India’s insurance ecosystem. Startups are using AI-driven underwriting, behavioural risk scoring, and instant claims processing to cut turnaround times from days to minutes. 

With tools like conversational AI for customer support, and machine-learning models that detect fraud with greater accuracy, insurtech startups are reducing operational costs while improving customer trust. 

In a significant development in the insurtech space, Union Budget 2025-26 opened the Indian insurance market to foreign players as it allowed 100% foreign direct investment (FDI), removing the 74% cap, with the condition that the premium funds remained in India.

The lifting of the cap on FDI is expected to accelerate India to be the sixth-largest insurance market within a decade, surpassing Germany, Canada, Italy, and South Korea, according to watchdog Insurance Regulatory and Development Authority of India (IRDAI). The move, aligned with the government’s ‘Insurance for All’ mission for 2047, will also drive digital transformation in the sector.

Insurtech startups are also contributing to the ecosystem as they have developed solutions for AI-driven underwriting and instant digital claims. Investors are also identifying the opportunity in the space for investments. For instance, insurance-focussed cybersecurity startup Mitigata raised $5.9 Mn in its Series A funding earlier this year.