After a period of aggressive expansion, India’s insurtech sector has entered a phase of consolidation, with funding dropping sharply from a peak of $820 million in 2021 to $239 million in 2024, according to a report by Perfios and The Digital Fifth.
Declining Funding
The report noted that insurtech funding hit its highest level in 2021, driven by rapid scale-ups and strong investor enthusiasm. However, the trend began to shift in 2022, when funding dropped to $546 million, followed by a further decline to $497 million in 2023. This marked the beginning of a transition from rapid growth to a focus on sustainable and quality-driven expansion.
This deliberate moderation, the report said, continued into 2024 and 2025, as global macroeconomic factors led to more disciplined capital allocation. In the first half of 2025, Indian insurtechs raised just $114 million.
“There is currently a clear gap in funding for tech stack companies and claims solutions — areas that are essential for driving efficiency and enhancing customer experience,” the report noted.
Key Players
InsuranceDekho’s $70 million raise in May 2025 was the largest so far this year, while Acko’s $136 million fundraise in May 2023 remains the highest in recent years. Acko has cumulatively raised $597 million to date, followed by Digit ($466 million) and Navi ($445 million), as per the report.
In 2025, insurance distribution tech players led fundraising activity, attracting $80 million — reflecting a continued emphasis on customer acquisition and market reach. Insurance manufacturers and insurance-as-a-service firms raised $8 million and $6 million, respectively. The report also highlighted the highly competitive nature of the sector, with 637 insurtech companies in India, of which 200 are funded. Total funding to the sector stands at $4 billion.