BENGALURU : Rural insurtech startup GramCover announced Monday it has raised $ 7 million as part of its Series A fundraiser co-led by Siana Capital and Inflexor Ventures.
Stride Ventures also participated in this cycle alongside existing investors Omidyar Network India, Flourish Ventures and Emphasis Ventures (EMVC).
With this fundraising, the company will strengthen its range of technologies and products. GramCover will also improve the availability of various insurance products and services on its partner application while expanding its point-of-sale network, technology, sales and operations teams.
âWe are thrilled with our Series A fundraising with seasoned tech-focused investors like Siana Capital and Inflexor. At GramCover, we will be strengthened by their deep technology expertise and start-up experience as we work to create a rural insurance organization focused on growth and profitability, âsaid Dhyanesh Bhatt, co -Founder and CEO of the GramCover group.
The five-year-old startup is a tech insurance market focused on rural India.
âThe GramCover team understood the key nuances of expanding the non-urban segment of insurance distribution which is a huge opportunity in India. With a strong end-to-end technology platform in conjunction with a network of ‘Human-assisted local agencies, we believe GramCover is well positioned to continue its high growth trajectory, âsaid Dinesh Goel, partner of Siana Capital.
In fiscal year 2020-2021, GramCover worked with over 1.7 million rural customers providing insurance for commodities such as crops, automobiles, livestock and health. ??110 crore in bonuses.
âOur investment in GramCover stems from Inflexor’s belief in supporting technology-led companies that strive to deepen insurance penetration, in order to create significant impact in a large, underinsured market. We are delighted to co-lead the investment and to join forces with an exceptional team. de Jatin and Dhyanesh, with proven execution capabilities, âsaid Pratip Mazumdar, partner of Inflexor Ventures.
The company aims to insure more than 10 million farmers over the next two to three years with a premium target of ??1000 crores. During this time, the GramCover team aims to deepen its footprint in states such as Bihar, West Bengal, Assam, Uttarakhand, Andhra Pradesh, and Maharashtra, among others.
To date, more than 3.2 million Indian farmers have purchased insurance through GramCover in 13 states and 8,000 villages.
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