Mumbai insurtech BimaPe raises pre-seed capital
Mumbai-based Insurtech startup BimaPe has announced today that it has raised US$54,000 in pre-seed capital led by the venture capital firm, Lightspeed. Titan Capital, iSeed, and Gemba Capital also participated in the round. BimaPe said it plans to use the funding to “further develop its products, expand its team, and invest in user acquisition”.
Rahul Mathur, Founder and Chief Executive Officer of BimaPe, said: “We are honored to have the backing of reputed investors like Lightspeed, Titan Capital, iSeed & Gemba Capital. With their support, we aim to simplify insurance policies for consumers all over India with the help of a user-friendly platform for all your policy management needs.
“At BimaPe, we aim to answer three fundamental questions for working professionals: what insurance does my family have, are we adequately covered, and if not, what can I do about it?”, he added.
The “struggling” insurance industry
Due to complicated processes, the insurance industry has been struggling for a while. BimaPe says that these processes can be difficult for customers to comprehend, resulting in the organisation creating a proprietary policy deconstruction algorithm, which uses “reinforcement learning technology, making insurance policies easier to understand by converting them to a jargon-free interface. This allows customers to know exactly what their policy does and does not cover, BimaPe said.
Harsha Kumar, Partner at Lightspeed, said insurance policies in India are relatively new. “Adoption of insurance products by Indian consumers is still in its infancy. India’s emerging middle class was forced to interact with online-only financial services companies during the pandemic”, he said.
“BimaPe’s emphasis on building a product to guide users to make better insurance decisions has driven strong word of mouth in an otherwise CAC intensive market”.
Bipin Shah, Partner at Titan Capital, said: “At Titan Capital, we are bullish on the insurance sector in India. Our investment in BimaPe sits in line with our thesis that the Indian consumer needs better online tools to make informed financial decisions. BimaPe has uniquely positioned itself via a Product first approach to bringing transparency into insurance”.
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.