GramCover, India’s leading rural insurtech startup, has raised USD 7 million in Series A fundraise which was co-led by Sirana Capital and Inflexor Ventures. Stride Ventures also participated in this round alongside existing investors Omidyar Network India, Flourish Ventures and Emphasis Ventures (EMVC). Unitus Capital acted as the exclusive financial advisor to the company on the transaction.
Dinesh Goel, Partner, Siana Capital, said GramCover team has understood the key nuances of scaling up the non-urban segment of insurance distribution which is a gigantic opportunity in India. “With a solid end to end deep technology platform in conjunction with a human assisted local agency network, we feel GramCover is well positioned to continue its high growth trajectory. Further, the business model helps achieve the twin objectives of profitable growth and providing livelihood risk protection to a large rural population of India.”
Pratip Mazumdar, Partner, Inflexor Ventures, said their investment in GramCover stems from Inflexor’s conviction in backing technology led enterprises working towards deepening the insurance penetration, to create a meaningful impact in a large, under-insured market. “We are pleased to co-lead the investment and partner with a stellar team of Jatin and Dhyanesh, with demonstrated capabilities of execution. We believe GramCover will play a pivotal role in radically transforming the insurance landscape of Bharat.”
Dhyanesh Bhatt, Co-Founder and Group CEO, GramCover, said they are excited about the Series A fund raise with seasoned tech focused investors like Siana Capital and Inflexor. “We at GramCover, will be strengthened by their deep tech domain expertise and their startup experience as we work towards building a growth and profitability focused rural insurtech organization.”
Jatin Singh, Founder and Managing Director, GramCover, said his vision of starting GramCover has been to provide a comprehensive cover to rural India. “गांव की सुरक्षा, गाय, गाड़ी, फसल और बीमारी, है हमारी जिम्मेदारी.”- I believe that the security of the village, the cow, the car, the crop and the disease is our responsibility.
GramCover has adopted a unique technology led distribution and servicing model customized for rural India to minimize the inefficiencies and transaction costs involved in protecting people’s assets and families. With this fundraise, the company will strengthen the technology and product offerings to significantly scale up the business and support functions. GramCover will also enhance the availability of various insurance products and services on “GramCover Partner” application and also expand its point of sale network, tech, sales & operation teams across multiple geographies.
The startup began its journey in 2018 by insuring 1,000 farmers. In FY21, the company worked with more than 1.7 million rural customers providing insurance across products like crop, motor, livestock and health worth 1.1 billion INR in premiums. The company aims to continue on its growth trajectory and would like to insure more than 10 million farmers in the next two to three years with a premium target of 10 billion INR. During this period, Team GramCover aims to deepen its footprint in states where it is already present like Bihar, West Bengal, Assam, Uttarakhand, Andhra Pradesh, Maharashtra etc and shall further extend its presence across other states as well.
With the advent of technology, GramCover has seen an uptick in rural india insurance penetration. Over the next decade, GramCover expects the rural insurance industry to grow significantly supported by a seamless tech enabled distribution mechanism, relevant products, right ticket sizes and a robust ecosystem for servicing and claims support.