[Mint] Rural Insurtech startup GramCover raises $7 million in Series A funding
BENGALURU : Rural insurtech startup GramCover on Monday said it has raised $7 million as part of its Series A fundraise co-led by Siana Capital and Inflexor Ventures.
Stride Ventures also participated in this round alongside existing investors Omidyar Network India, Flourish Ventures and Emphasis Ventures (EMVC).
With this fundraise, the company will strengthen its technology and product offerings. GramCover will also enhance the availability of various insurance products and services on its partner application while expanding its point of sale network, technology, sales and operation teams.
“We are excited about our Series A fund raise with seasoned tech focussed investors like Siana Capital and Inflexor. We, at GramCover, will be strengthened by their deep tech domain expertise and their start up experience as we work towards building a growth and profitability focussed rural insuretech organization," said Dhyanesh Bhatt, co-founder and group chief executive at GramCover.
The five-year-old startup is a tech-enabled insurance marketplace focused on rural India.
"GramCover team has understood the key nuances of scaling up the non-urban segment of insurance distribution which is a gigantic opportunity in India. With a solid end to end deep technology platform in conjunction with a human assisted local agency network, we feel GramCover is well positioned to continue its high growth trajectory," said Dinesh Goel, partner, Siana Capital.
In fiscal year 2020-2021, GramCover has worked with more than 1.7 million rural customers providing insurance across products like crop, motor, livestock and health worth ₹110 crore in premiums.
"Our investment in GramCover stems from Inflexor's conviction in backing technology led enterprises working towards deepening the insurance penetration, to create a meaningful impact in a large, under-insured market. We are pleased to co-lead the investment and partner with a stellar team of Jatin and Dhyanesh, with demonstrated capabilities of execution," said Pratip Mazumdar, partner of Inflexor Ventures.
The company is targeting to insure more than 10 million farmers in the next two to three years with a premium target of ₹1000 crore. During this period, team GramCover aims to deepen its footprint in states including Bihar, West Bengal, Assam, Uttarakhand, Andhra Pradesh, Maharashtra among others.
Till date, over 3.2 million Indian farmers have purchased insurance through GramCover across 13 states, and 8000 villages.