Leading rural insurtech start-up GramCover has raised $7 million through its Series A funding, led by Siana Capital and Inflexor Ventures. Stride Ventures also participated in this round of Series A, the first round of institutional funding led by one or more investors.
Omidyar Network India, Flourish Ventures and Emphasis Ventures (EMVC) have already invested in GramCover. Unitus Capital acted as the exclusive financial advisor for the funding.
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GramCover, a tech-enabled insurance marketplace for rural India, has adopted a unique technology-led distribution and servicing model customised for rural India to minimise the inefficiencies and transaction costs involved in protecting people’s assets and families.
Scale-up plans
With the latest funding, GramCover will strengthen its technology and product offerings to scale up its business and support functions. The start-up will also increase the availability of various insurance products and services on “GramCover Partner” application and expand its point of sale network, tech, sales and operation teams across multiple geographies.
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Dinesh Goel, Partner, Siana Capital, said 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,” he said.
Pratip Mazumdar, Partner of Inflexor Ventures, said: “Our investment in GramCover stems from Inflexor’s conviction in backing technology-led enterprises working towards deepening insurance penetration, to create a meaningful impact in a large, under-insured market.”
Launched in 2018 by insuring 1,000 farmers, GramCover has worked with over 1.7 million rural customers providing insurance across products like crop, motor, livestock and health worth ₹110 crore in premiums. The company aims to insure over 10 million farmers in the next two to three years with a premium target of ₹1,000 crore.
GramCover is currently present in Bihar, West Bengal, Assam, Uttarakhand, Andhra Pradesh and Maharashtra. It plans to extend its presence across the country further.