Funding for Insurtech: The MSE-focused employee insurance technology company Onsurity announced that it has raised $24 million in Series-B funding led by the International Finance Corporation (IFC), along with the participation of existing investors Nexus Ventures Partners and Quona Capital.
Onsurity provides employee insurance benefits for Indian SMEs, startups and enterprises, offering products such as Cyber insurance, D&O liability insurance, and Commercial General Liability insurance, among others under Onsurity Plus. The insurtech company works towards eliminating prolonged waiting periods and removing uncertainties involved in the claim process. The company also provides an AI-based process for a digital and transparent insurance utilisation journey.
Onsurity plans to utilise the funds towards partnering with more than 50,000 companies and providing insurance benefits to over 5 million people by 2026. The company also plans to turn profitable by utilising the funds. At present, it serves customers such as Jupiter Money, CleverTap, Porter, Zepto, Sobha Developers, DBS Bank, Pantaloons, and Sattva, among others.
Yogesh Agarwal, Founder and CEO, Onsurity said, “Our goal has always been to revolutionise employee healthcare benefits, making them accessible and user-friendly for India’s SMEs. With the strong support of IFC, Nexus Venture Partners, and Quona Capital, we will further intensify our efforts in scaling our tech-based platform which will enable us to extend insurance coverage to a larger spectrum of SMEs, ensuring a comprehensive safety net for their operations.”
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In August, the company reached a milestone of 1 million insurance-covered employees. The company at present serves more than 5,000 business customers spanning across 26 states and 3 union territories. According to the release, 80 per cent of the business customers of Onsurity are providing employee health benefits for the first time.
The company has business customers spanning from an employee strength of just 3 to over a thousand employees, including startup employees and gig workers. Also, more than half of the insured employees are blue-collared workers, of which 40 per cent hail from Tier 2 and 3 cities.
“The availability of insurance coverage is vital for economic risk management and bolstering social security. Our recent funding underscores our dedication to a technology platform that improves the accessibility of employer-sponsored health insurance services,” said Wendy Werner, IFC Country Head, India. “Out-of-pocket healthcare expenses can be a significant burden for employees of SMEs. Health insurance helps SMEs manage their expenses while supporting their employees.”