This health & InsurTech startup helps businesses purchase and administer employee-friendly health insurance policies
Nova Benefits is an employee benefits platform centred around corporate health insurance. Nova’s web and mobile apps provide team members with a single platform to access their company-sponsored benefits. Companies consult Nova to decide the best health plans while maximising coverages and minimising cost. Nova also enables priority claims resolution for its clients leading to faster claim settlement and reports an industry leading claims CSAT of 9.6/10.
Talking about the early days, Nova Benefits CEO and co-founder Saransh Garg says, “At my previous startup, I found it very difficult to get health insurance for my seven-employee company. There was no place to search for health plans for companies online, get unbiased advice and get quick answers. Co-founder and CTO Yash Gupta, having his first job in South Korea, found it pretty natural when Samsung covered all his expenses for even minor things like a cold, and had access to a person who was there to help with any sort of appointment or reimbursement, at no cost. But then he realised he was paying some $500 a month from his paycheck for health insurance. We went deep into the rabbit hole of insurance and discovered that employees in India have a totally broken experience when it comes to health insurance – it covers only hospitalisation, and most people don’t even know that their company offers one.”
This seemed a perfect opportunity to the duo to make the experience better while improving price transparency. “Since March 2020 when the lockdown was imposed due to Covid-19, everyone started looking at their health policies to see if Covid was covered,” says Garg. “We initially asked founders of companies to pay us by the hour for our time. When they started paying us for our time, we knew we were onto something. We also realised that the size of the market is massive – every single company is a potential client! That was the eureka moment for us.”
According to the co-founders, Nova has become the fastest growing Insurtech having onboarded more than 100 clients with 30,000 members on its platform. “Apart from startups, we work with larger companies such as Dream11, Snapdeal, Yulu Bikes, Chumbak, Fisdom, Dealshare, ObserveAI and many more. We are a category creator in the employee benefits space. We have also expanded to other benefits like doctor consultations, mental health counselling, health checkups and more. We’ve processed over 500 claims in the last few months with an average claims CSAT of 9.6/10,” says Garg.
Nova Benefits closed a $1 million seed round a few months back. It has three primary investors—Better Capital, Multiply Ventures, and Kunal Bahl and Rohit Bansal’s Titan Capital. Sumit Maniyar, CEO of Rupeek, and Ashish Goyal, co-founder of Early Salary, are angel investors in it.
Nova’s platform is currently free for its clients. It plans to monetise by up-selling health packages and value added services in the future. The startup plans to use the funds to expand its technology and product capabilities. Garg says, “Our goal is to have 10 million members insured via our platform in the next few years. Corporate health insurance market is expected to cross $10 billion in premiums by 2025. Majority of Indians will be covered by their employers and Covid has accelerated the penetration. 2030 will be the decade when India goes from 10% private health insurance penetration to 90%+.”