Insurtech startup GramCover on Oct 4 said it has raised $7 million in its Series-A funding round co-led by Siana Capital and Inflexor Ventures. The fundraise also saw the participation of Stride Ventures along with existing backers Omidyar Network India, Flourish Ventures and Emphasis Ventures (EMVC).
The funds raised will be used to strengthen technology and product offerings, “which would eventually help in scaling up its business and support functions,” the company said in a statement. It also plans to enhance the availability of various insurance products and services on “GramCover Partner” application.
GramCover is also eyeing expansion of its point of sale network, tech, sales and operation teams across multiple new and existing geographies — Bihar, West Bengal, Assam, Uttarakhand, Andhra Pradesh, Maharashtra among others.
Founded by Jatin Singh, GramCover is a tech-enabled insurance marketplace focused on rural India. It has adopted a unique technology-led distribution and servicing model for rural customers, minimizing the inefficiencies and transaction costs involved in protecting people’s assets and families. 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 1000 crore.
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“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.
“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, Siana Capital.
Till date, over 3.2 million Indian farmers have purchased insurance through GramCover across 13 states, and 8000 villages.
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