India’s online insurance platform, Coverfox has managed to secure $22 million in a series C fundraising exercise led by IFC, a World Bank off-shoot, and Transamerica.
Some of the company’s existing investors also participated in the round. Company’s former fundraising round that combined Series A and B together had received $17 million from leading investors such as Accel, SAIF Partners and Cataraman Ventures, the VC firm owned by Infosys fame Narayan Murthy.
The company was founded by Devendra Rane in 2013 and offers proprietary technology and algorithm based platform to buy and compare policies across leading insurance companies. It has integrated successfully with more than 35 insurers and currently providing 150 policies in life, motor, and health insurance.
Pramanshu Singh, CEO at Coverfox said,
We have a passionate team of professionals committed to building Asia’s best insure-tech platform that can help users buy policies at ease without being bogged down by telecallers.
“Our current fundraising is a validation of our vision. We would use the money to enhance our technological capabilities focusing primarily on improving the user’s experience by going into both vertical and horizontal in each insurance category”, he added.
The startup will use Series C funding to widen its insurance outreach into Tier-2 and Tier-3 cities and specifically address women’s needs. The technology team will also get a shot in the arm, encouraging innovation and new development including turbocharging Coverdrive, an initiative launched in 2017.
Jun Zhang, Head of IFC Country said while commenting on the investment,
“India has a very low penetration rate for women and rural population, making it as one of the most underpenetrated insurance markets globally. IFC’s investment in Coverfox will push country’s digitization agenda by leveraging technology, delivering insurance products to customers outside metros and to women who are currently underserved.”