Financial product delivery platform Finhaat has raised $3 Mn (approximately INR 25 Cr) in a seed funding round led by impact venture fund Omnivore, with participation from Kettleborough VC.
The Mumbai-based startup plans to deploy the fresh proceeds for further building technological models, rolling out innovative products, scaling up its partner base and hiring resources for new verticals.
Founded by Sandeep Katiyar, Navneet Shrivastava and Vinod Singh, Finhaat is a financial product delivery platform created for the emerging middle-class and lower-income segments primarily in the rural, tier III and IV cities. It offers a complete range of insurance products on its insurance broking platform delivered through Finhaat Insurance Broking Pvt Ltd.
The startup, which first began operations in 2022 with insurance as its first product vertical, claims to be building a business-to-business (B2B) insurance distribution platform for institutions working with the underserved, including NBFCs, MFIs, BC networks, Nidhi companies, cooperatives, NGOs and FPOs.
“Our operations already cover over 65% of pin codes in India. We are determined to transform the financial services space for the underserved,” said cofounder Singh.
“Financial inclusion remains dismally low in rural India – just 11.5% of households have net savings, and under 10% have life insurance. This vulnerability is most acute in low-income segments, especially for farmers confronting myriad risks. Yet, tailored products to mitigate uncertainties and boost financial stability and growth are few and far between,” said Omnivore’s managing partner Jinesh Shah.
The landscape of insurance, a sector traditionally entrenched in legacy systems and cumbersome processes, is undergoing a seismic shift in India. The space has been gaining momentum for the past some time now.
For instance, in November, insurtech startup Onsurity secured $24 Mn in its Series B funding round led by the International Finance Corporation (IFC) to co-create a technology solution with its insurance partners, to drive seamless and transparent transactions.
Also the fintech soonicorn InCred declared in a filing that it may soon foray into the insurtech segment as its board has already given a nod to apply for a corporate insurance agency licence from the Insurance Regulatory and Development Authority of India (IRDAI).
According to Inc42’s State Of Indian Fintech Report, Q3 2023 InFocus, the insurtech market size was more than $87 Bn in 2022 and is estimated to cross the $307 Bn mark in 2030 at 17% CAGR.
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