GramCover, an insurtech startup, has raised $7 million in a Series A round led by Inflexor Ventures and Siana Capital. Stride Ventures, as well as existing ventures such as Omidyar Network India, Emphasis Ventures, and Flourish Ventures, took part in the funding round.
The new funds will be used to improve the startup’s technology and product offerings, as well as to scale up its business and support functions, according to a statement. GramCover also stated that it will broaden its point-of-sale network, technology, and operations teams across geographies.
“As we work to build a growth and profitability focused rural insurtech organisation, we will be strengthened by their deep-tech domain expertise and startup experience,” said Dhyanesh Bhatt, co-founder and Group CEO.
“With a solid end-to-end deep technology platform and a human-assisted local agency network, we believe GramCover is well-positioned to continue its rapid growth.” Furthermore, the business model contributes to the twin goals of profitable growth and livelihood risk protection for a large rural population in India,” said Dinesh Goel, partner at Siana Capital.
GramCover has insured approximately 3.2 million Indian farmers since its inception until FY21, and the startup has customers in 8000 villages, 450 blocks, 50 districts, and 13 states.
“We are pleased to co-lead the investment and collaborate with a stellar team of Jatin and Dhyanesh, who have demonstrated execution capabilities. We believe GramCover will play a critical role in radically changing Bharat’s insurance landscape,” said Pratip Mazumdar, Partner at Inflexor Ventures.
The startup stated that it intends to insure over 10 million farmers in the next two to three years, with a premium target of Rs 1000 crore. Apart from Bihar, West Bengal, Assam, Uttarakhand, Andhra Pradesh, and Maharashtra, the company intends to expand its presence in other states.