Fedo Health Technologies Pvt Ltd, an insurance-technology startup focussed on automating processes in the health and life insurance segments, has raised $1 million (about Rs 7.43 crore) in a pre-Series A funding round.
The round in the Bengaluru-based startup has been led by Unicorn India Ventures, Fedo said in a statement. Other participants in this round include the SEA Fund and former Max Bupa managing director and CEO Ashish Mehrotra.
Unicorn has invested out of its Rs 400-crore second fund. The fund marked its first close earlier this year and has already invested in a few other companies including Probus Smart Things Pvt. Ltd and neo-banking startup Finin.
Fedo was set up in 2017 by Prasanth Madavana and Arun Mallavarapu. The company says its artificial intelligence and machine learning-backed platform provides insurers with insights that help them enhance sales, reduce costs, and enrich the quality of their portfolio.
It also operates ‘Fedo Score’, a proprietary health score developed by medical professionals and data scientists. Apart from this, it partners with the health departments of local governments in India and abroad to provide insights on population risk predictions.
Fedo said it will use the capital it has raised in this pre-Series A round to enhance its computer vision capabilities aimed at the non-invasive identification of health risks. The company says it is also working with a global player in the space on the dynamic pricing of retail and group premiums.
It will also focus on its global expansion efforts, starting with Southeast Asia and Australia.
“Our vision is to offer AI-backed solutions to insurance providers, which enables early identification of potential health risks by using non-invasive methods thereby reducing out of pocket expenditures of individuals and making insurance accessible, affordable and personalised,” Madavana said.
The investment in Fedo is another example of the growing investor interest in the insurance-technology segment in the country. Factors such as low insurance coverage and technology-backed underwriting processes have contributed to this trend.
In September, Acko Technology & Services Pvt Ltd raised $60 million in a round led by Munich Re Ventures, the venture capital arm of Germany-based reinsurance company Munich Re Group. The investment marked the San Francisco-based Munich Re Ventures’ first Indian bet.
In July, Plum Benefits Pvt. Ltd, which helps companies set up group health insurance programmes, raised Rs 7 crore in a seed funding round. The fundraise was led by the Incubate Fund, with participation from Gemba Capital and Tracxn Labs.
In May, the Bharat Inclusion Seed Fund led a pre-Series A round in UMBO InsurDataTech Systems Pvt. Ltd, which operates insurance-technology startup Riskcovry. The company says it is a ‘neo-insurer’ that provides businesses with large captive user bases ‘insurance-in-a-box’ solutions.