The startup will deploy the fresh proceeds to push towards profitability and eventually to its Series B round of funding
Riskcovry operates on an 'insurance-in-a-box' model, facilitating insurance infrastructure for platforms and vendors seeking to offer insurance products
To date, the startup has raised around $6.8 Mn
Mumbai-based insurance tech startup Riskcovry has raised around $4.5 Mn (INR 37.3 Cr) in a bridge funding round led by Morphosis Venture Capital, with participation from IIFL.
A bridge round is a small funding step between major investments to help a company reach specific financial goals.
The startup will deploy the fresh proceeds to push towards profitability and eventually to its Series B round of funding, ET reported.
“With this small round in place we intend to achieve cash profitability on a base of $25 Mn (INR 200 Cr approx) in gross written premium processed per month, post which, we might raise a healthy Series B,” Chiranth Patil, cofounder, Riskcovry told ET.
The round includes a small secondary component providing liquidity to employees and offering an exit to early investors.
Riskcovry, founded in 2018, operates on an ‘insurance-in-a-box’ model, facilitating insurance infrastructure for platforms and vendors seeking to offer insurance products.
The startup has raised around $6.8 Mn in total funding so far from Omidyar Network India, Pentathlon Ventures, Bharat Innovation Fund and others, Tracxn data shows.
Serving a diverse clientele ranging from mainstream distributors like banks and NBFCs to newcomers in insurance distribution such as retail, payment networks, digital, telecom, fintech, and tech startups, the B2B2C startup enables companies from any industry to provide digital insurance products and services to end-customers.
Riskcovry has around 40 customers across banks, home finance companies, non-banking finance companies, startups and even original equipment manufacturers out of which 55% are already live and the others are in the process.
Riskcovry generates revenue primarily through a software-as-a-service (SaaS) model and a per-transaction revenue model for successful insurance product purchases. The company also employs an API-based payment model, with over 80% of current revenue derived from the per-transaction model.
In 2021, the startup raised $5 Mn in Series A funding in a round led by Omidyar Network India.
Further, the startup intends to close the current financial year with a revenue of INR 30 Cr, thereby clocking a five times jump from the previous year. It has already processed around INR 1,500 Cr in written premium in the last calendar year, compared to around INR 100 Cr processed in 2021.
The Indian insurance market is anticipated to achieve a valuation of $200 Bn by 2027, establishing itself as the ninth-largest life insurance market worldwide. IRDAI has reported that as of February 2023, the insurance industry in India has reached a valuation of INR 59 Cr ($7.1 Mn).
