SecureNow, an insurance broker focused on selling commercial insurance policies to small and medium-sized enterprises (SMEs) and mid-market clients, has raised $6 million (around Rs 45 crore) from Apis Insurtech Fund I, managed by Apis Partners LLP, and Charan Singh, Founder of SelectQuote Inc, the company said in a statement.
The company said that the capital will be used to develop the platform further, bundle value-added services for clients, and increase client outreach.
The company will focus on commercial insurance issuance by developing an end-to-end insurtech platform, that presently serves 25,000 small businesses in 150 locations. Over the next three years, the company aims to grow to over one million enterprises, and the same timeframe in which it expects to reach profitability, the statement said.
SecureNow's platform provides a single window for all insurance problems for its clients, including claims, and covers the complete range of commercial insurances, including group health insurance, property, marine, and liability coverage.
“Businesses bravely face material risk every day. A quick look at our risk diagnostic tool would show you how some risks are existential and vary by industry. Still, insurance remains a low-involvement purchase. Clients want to quickly evaluate insurance plans for value and transparency. The only way to deliver this consistently is by the ubiquitous use of technology across the buying journey. The proof of this is in our net retention rate, which is well over 100%,” said Kapil Mehta, Co-founder of SecureNow.
“With scale, we increase our ability to consolidate demand, and deliver better value for our clients. There are over 60 million firms registered in the country, majority of which are underinsured. So, we have some ground to cover. Commercial insurance for businesses is likely to be one of the fastest-growing segments within insurance,” he added.
SecureNow sells commercial goods such as group health insurance policies, and property, marine, and liability insurance to commercial organisations. It also looks into client claims and insurance services. SecureNow TechServices Pvt. Ltd. and SecureNow Insurance Broker Pvt. Ltd. are now part of the SecureNow Group.
New-age insurance companies have attracted significant funding lately. Early this year, cloud-based general insurance company Digit Insurance was valued at $1.9 billion, following an $18.4 million (Rs 135 crore) funding round from returning investors A91 Partners, TVS Capital and Faering Capital.
In March this year, Invictus Insurance Broking Services, which runs insurtech platform Turtlemint, raised an undisclosed amount from Singapore-based Jungle Ventures as part of a growth funding round.
In the same month, Omidyar Network India, Pune-based Pentathlon Ventures and Delhi-based DMI Sparkle Fund had invested $5 million (around Rs 36.6 crore) in a Series A round of funding in Bengaluru-based Riskcovry.