Mumbai-based insurtech startup Riskcovry has successfully raised $4.5 million

Riskcovry Secures $4.5 Million Funding in Bridge Round Led by Morphosis Venture Capital and IIFL

Usage of Funds: The startup plans to utilize the funds to advance toward profitability and prepare for its upcoming Series B round. The round includes a small secondary component, providing liquidity to employees and facilitating an exit for early investors.

Business Model and Operations: Riskcovry, founded in 2018, operates on an ‘insurance-in-a-box’ model, providing insurance infrastructure for various platforms and vendors seeking to offer insurance products. It caters to a diverse clientele, including banks, NBFCs, retail, payment networks, digital, telecom, fintech, and tech startups.

Revenue Generation: Riskcovry primarily generates revenue through a software-as-a-service (SaaS) model and a per-transaction revenue model for successful insurance product purchases. The company has processed around INR 1,500 Cr in written premium in the last calendar year, reflecting significant growth.

Market Outlook: The Indian insurance market is poised to achieve a valuation of $200 billion by 2027, positioning itself as the ninth-largest life insurance market globally. The Insurance Regulatory and Development Authority of India (IRDAI) reported the industry’s valuation at INR 59 Cr ($7.1 Mn) as of February 2023.

Previous Funding and Series A Round: In 2021, Riskcovry raised $5 million in a Series A funding round led by Omidyar Network India. The startup aims to close the current financial year with a revenue of INR 30 Cr, marking a substantial increase from the previous year.

This funding round is a strategic move for Riskcovry as it navigates the dynamic landscape of the Indian insurance industry, capitalizing on the growing demand for digital insurance solutions.