By ET Bureau, Illustration by Rahul Awasthi
Insurtech startup GramCover on Wednesday announced that it has raised $7 million in a Series A round co-led by Siana Capital and Inflexor Ventures in a Series A round.
The fresh capital will be used to strengthen the technology and product offerings and also scale up the business and support functions.
“We, at GramCover, will be strengthened by their deep-tech domain expertise and their startup experience as we work towards building a growth and profitability focussed rural insurtech organization,” Dhyanesh Bhatt, cofounder and group CEO, said in a statement.
The five-year-old startup specialises as an insurtech marketplace focused on rural India facilitating policy purchases across products like crop, motor, livestock, and health insurance. The firm said that it has sold insurance covers worth Rs 110 crore in premiums.
GramCover said that it will also expand its point of sale network, tech, and operation teams across geographies.
The startup said that it aims to insure more than 10 million farmers in the next two to three years with a premium target of Rs 1,000 crore. The firm also aims to deepen its footprint in states where it is already present like Bihar, West Bengal, Assam, Uttarakhand, Andhra Pradesh, Maharashtra with plans to extend its presence across other states as well.
“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. Further, the business model helps achieve the twin objectives of profitable growth and providing livelihood risk protection to a large rural population of India,” said Dinesh Goel, Partner at Siana Capital.
According to the firm, around 3.2 million Indian farmers have purchased insurance through GramCover since inception till FY21, and the company has customers in 13 states, 50 districts, 450 blocks and 8000 villages.
“We are pleased to co-lead the investment and partner with a stellar team of Jatin and Dhyanesh, with demonstrated capabilities of execution. We believe GramCover will play a pivotal role in radically transforming the insurance landscape of Bharat,” said Pratip Mazumdar, partner at Inflexor Ventures.
The fundraise also saw the participation of Stride Ventures along with existing backers Omidyar Network India, Flourish Ventures and Emphasis Ventures (EMVC).
Unitus Capital acted as the exclusive financial advisor to the company on the transaction.