Onsurity Technologies Pvt. Ltd, which operates an eponymous insurtech startup, on Monday said it has raised $24 million (nearly Rs 200 crore) in a Series B funding round led by the International Finance Corporation, the private-sector investment arm of World Bank Group.
Existing investors Nexus Venture Partners and Quona Capital also participated in the latest funding mop-up, the company said in a statement.
The startup plans to use the funding to work with its insurance partners to facilitate improved claims experience for its members by co-creating a technology solution. It said that the initiative will eliminate prolonged waiting periods and uncertainties typically associated with claims.
The company also plans to use these funds towards its sales and marketing channels to cover over 50,000 clients by 2026. It’s also keeping a portion of the corpus aside for its efforts that will help it move towards profitability. At present, it has over 5000 SME clients.
“Our recent funding underscores our dedication to a technology platform that improves accessibility of employer-sponsored health insurance services," said Wendy Werner, IFC country head, India.
"Out-of-pocket healthcare expenses can be a significant burden for employees of SMEs. Health insurance helps SMEs manage their expenses while supporting their employees,” she added.
Prior to this, Onsurity had raised Rs 118.6 crore in its Series A funding round led by Quona Capital along with participation from existing investors Nexus Venture Partners and Whiteboard Capital. The round also saw participation from Vivek Garipalli of Clover Healthcare.
Bengaluru-based Onsurity, which was founded in 2020 by Yogesh Agarwal and Kulin Shah, offers monthly subscription-based employee health benefits options to regular and gig workers in SMEs operating in sports, environment, forest, technology and allied sectors.
In the financial year ended March 2022, the startup made a revenue of Rs 14.1 crore, which was a four-fold jump from the previous fiscal in which it made Rs 3.2 crore. On the other hand, it also saw its losses surge nearly 2.4x to Rs 21.6 crore in FY22 in comparison to Rs 8.8 crore in FY21, according to VCCEdge, the data and research platform of VCCircle.
