Zopper Nets $25 Mn To Strengthen Its Insurance Distribution Platform

Delhi NCR-based insurtech startup Zopper has secured $25 Mn (around INR 211.2 Cr) in a Series D funding round, co-led by Elevation Capital and Dharana Capital, with participation from existing investor Blume Ventures.

The startup plans to use the fresh funding to strengthen its overall tech stack, including the insurance distribution platform.

Further, a chunk of the proceeds will also be deployed to enhance the post sales and servicing capabilities for Zopper’s device and appliance protection business, the company said in a statement.

Additionally, a portion of the capital has been earmarked for investing in data science, data engineering, artificial intelligence and machine learning.

Founded in 2011 by Surjendu Kuila and Mayank Gupta, Zopper is an embedded platform for insurance sales. It helps large insurance companies reach out to ecosystem partners like ecommerce marketplaces using its proprietary embedded insurance API suite.

The company is building a modern policy administration system (PAS) that will use contemporary tech stack, efficient algorithms and data handling and security features for seamless customer service. 

Zopper earns revenue from the ecosystem partners and the insurance carriers. It levies a brokerage fee from insurers to distribute products to an ecosystem partner.

Ecosystem partners can use the Zopper platform to address concerns related to post-sales, endorsement and claims, among other things. Zopper earns money for every policy that runs through this particular pipe. 

The startup, which counts counts Creaegis, Bessemer Venture Partners, ICICI Venture among its backers, claims to have raised $100 Mn in funding till date. In 2022, Zopper raised $75 Mn in its Series C funding round led by Creaegis.

It has presence in more than 1,200 cities pan-India and caters to top brands such as Amazon, Ola, Xiaomi, Croma, Hitachi, Equitas Small Finance Bank and Chaitanya, among others.

The investment in Zopper comes at a time when India’s insurtech market is witnessing a boom and is poised to grow to a market size of $307 Bn by 2030.

Further, homegrown insurtech startups are also seeing increasing interest from investors. For instance, in September, Onsurity raised an additional funding of $21 Mn, led by private equity fund Creaegis, to close its Series B round at $45 Mn.

Prior to that, in August, Jaipur-based Square Insurance pocketed $3 Mn in Pre-Series A funding from investors like BizDateUp and Negen Capital.