Probus Insurance, owned by Probus Insurance Broker Private Limited, has raised $6.7 million in a funding round led by BlueOrchard Impact Investment Managers, the first external investor.
“The company shall be deploying the capital in technology and expanding its presence across geographies,” the online insurance broking firm said in a statement.
The New Delhi-based company has transitioned from a traditional insurance brokerage firm to a tech-enabled platform, building a robust framework and ecosystem in the online retail distribution space.
Established in 2003, Probus Insurance currently offers motor insurance, life insurance, health insurance, travel insurance and sachet products on its online platform.
“The company is also working aggressively in the field of climate insurance for retail customers. Probus has a comprehensive, tailor-made product offering with more than 80% of its reach in the Tier 2 and Tier 3 regions,” the statement said.
Besides its online presence, the firm has a local footprint and distribution network, covering over 400 cities, and is expected to reach out to more than 10 million insurance beneficiaries in the next four years.
"It's all the more impressive that they have boot-strapped this growth, and we are excited to be the company's first external investor. We believe this is a great opportunity to partner with a firm that has shown real dedication to expand insurance coverage for low- and middle-income segments of the population, especially those located outside of Tier 1 cities," said Mahesh Joshi, Head of Private Equity Investments - Asia at BlueOrchard.
An initiative of the UN, BlueOrchard was founded in 2001 as the first commercial manager of microfinance debt investments worldwide.
The firm offers impact investment solutions across asset classes, connecting millions of entrepreneurs in emerging and frontier markets with investors with the aim to make impact investment solutions accessible to all and to advance the conscious use of capital.
As on June 2021, BlueOrchard has invested over $8 billion across more than 90 countries providing access to financial and related services to over 223 million poor and vulnerable people in emerging and frontier markets.
With the external fundraise, Probus will strengthen its technology infrastructure & deep technology capabilities, enhancing the AI and ML (artificial intelligence and machine learning) experiences on its platform, further extending support to other languages. The company shall also focus on building the scalable business model keeping new geographies, especially on Tier 2 and Tier 3 locations.
Rakesh Goyal, Managing Director of Probus, said, "We look forward to working with BlueOrchard's team to bring world-class innovations to the Indian market. This partnership will help us in realising our dream of increased insurance awareness and penetration across the segments of the population that usually have limited access to insurance and the protection it affords."