Onsurity Secures US$45M in Series B Funding for SMEs
Onsurity, the insurtech startup specialising in employee healthcare benefits for small and medium enterprises (SMEs), has successfully closed its Series B funding round at US$45mn. The latest injection of US$21mn, led by private equity fund Creaegis, follows an initial $24mn raised in October 2023 from International Finance Corporation, Nexus Venture Partners, and Quona Capital.
Founded in 2020 by Kulin Shah and Yogesh Agarwal, Onsurity has established itself as a strong player in India's insurtech sector. The company's innovative approach to providing comprehensive healthcare benefits has resonated with SMEs, resulting in a client base of over 8,000 companies across 26 states and three union territories.
Tech-driven expansion
Onsurity plans to leverage the fresh capital to accelerate its technological development and expand its product offerings. Kulin Shah, co-founder and COO, says: "Onsurity Plus, our suite of business risk insurance solutions, will also gain from this boost, enabling us to launch more innovative products soon".
The startup's focus on digital innovation is evident in its plans to further develop its tech stack, enhance the claims experience, and create digital "greenfield" products. This tech-centric approach aligns with the growing demand for streamlined, user-friendly insurance solutions in the SME sector.
Onsurity's current product suite includes hospitalisation coverage, healthcare at home, and pre- and post-hospitalisation expenses. The company's ability to offer these services through a digital platform has been key to its rapid growth, particularly in a market where traditional insurance products often fail to meet the specific needs of SMEs.
Market positioning and growth targets
The insurtech landscape in India is becoming increasingly competitive, with Onsurity facing competition from players such as Loop Health, Acko, and Plum Insurance. However, Onsurity's focus on the underserved SME market appears to be paying dividends.
Prakash Parthasarathy, CIO and managing partner at Creaegis, adds: "Onsurity has made significant progress in addressing this gap (in insurance and risk management products for SMEs) by offering a unique value proposition through its digitally-enabled healthcare and insurance solutions that cater to the evolving needs of Indian SMEs".
The company's ambitious growth plans are reflected in its target to expand its client base from the current 8,000 to 50,000 companies by 2026.
Navigating regulatory challenges
As Onsurity continues its expansion, it will need to navigate the complex regulatory landscape of India's insurance sector. The Insurance Regulatory and Development Authority of India (IRDAI) has been increasingly focused on promoting innovation while ensuring consumer protection.
Onsurity's ability to balance rapid product development with regulatory compliance will be crucial to its long-term success. The company's focus on digital solutions and data-driven underwriting may provide advantages in meeting evolving regulatory requirements, particularly in areas such as risk assessment and claims processing.
The insurtech startup's success in attracting significant funding, including backing from former cricketer Anil Kumble, who invested in October 2022 and took on a strategic advisory role, suggests that investors see the potential for substantial returns in the SME insurance market.
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