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”.