SME-focused insurtech startup Onsurity has secured $24 Mn in its Series B funding round led by the International Finance Corporation (IFC). The round also saw participation from its existing investors Nexus Venture Partners and Quona Capital.
Founded in 2020 by Yogesh Agarwal and Kulin Shah, Onsurity is an employee healthcare benefits provider which claims to have served over 10 lakh people. Currently, it caters to over 5,000 companies, including Jupiter Money, CleverTap, Porter, Zepto, Sobha Developers, DBS Bank, Pantaloons, and Sattva, among others.
The startup aims to deploy the funds to co-create a technology solution with its insurance partners, to drive seamless and transparent transactions. Further, Onsurity has set a goal to onboard 50,000 companies to serve more than 5 Mn lives by 2026.
Commenting on the development, cofounder Agarwal said, “With the strong support of IFC, Nexus Venture Partners, and Quona Capital, we will further intensify our efforts in scaling our tech-based platform which will enable us to extend insurance coverage to a larger spectrum of SMEs, ensuring a comprehensive safety net for their operations.”
Onsurity aims to create an artificial intelligence (AI) powered claiming process for users that will eliminate prolonged waiting periods and uncertainties typically associated with claims. This will ensure that all members experience a fully digital, transparent, and efficient benefits utilisation process.
Commenting on this, cofounder Shah added, “The fresh infusion of funds will supercharge our mission to broaden our product offerings by crafting one of the finest tech-led distribution stacks in the industry.”
According to Shah, the funding will allow the startup to explore new geographies and penetrate underserved customer segments.
The startup aims to make claims easier for the employees of small-scale businesses and startups. In the process, it claims to have catered to a spectrum of companies, ranging from small teams of 3 to established businesses with over 1,000 employees.
Onsurity covers people ranging from business executives to employees and gig workers as well, along with their dependents. Over half of Onsurity’s members are blue-collar workers, and close to 40% hail from Tier-II and Tier-III cities. It claims that 80% of businesses purchasing healthcare memberships from Onsurity have ventured into employee healthcare for the first time.
In addition to healthcare, Onsurity also offers cyber insurance, commercial general liability insurance, among others under Onsurity Plus. These offerings are designed to provide comprehensive coverage and support SMEs in navigating the complexities of modern risks and challenges.
According to Inc42’s State Of The Indian Fintech Report Q2 2023, the insurtech market size stood at $87 Bn in 2022 and is expected to grow to $307 Bn by 2030 at 17% CAGR occupying 14% of the Indian fintech market by then.
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