GramCover raises $7M in Series A round
GramCover, a rural insurtech startup, announced that it has raised $7 million in a Series A round co-led by Siana Capital and Inflexor Ventures.
The round also saw participation from Stride Ventures, alongside existing investors Omidyar Network India, Flourish Ventures, and Emphasis Ventures (EMVC).
GramCover has undertaken a unique technology-led distribution and servicing model tailor-made for rural India to reduce the inefficiencies and transaction costs associated with protecting people’s assets and families.
The Noida-based startup plans to use the freshly raised funds to improve the availability of several insurance products and services on the “GramCover Partner” application and extend its point of sale network, tech, sales, and operation teams across multiple geographies.
Commenting on the investment, Dinesh Goel, Partner, Siana Capital, said, “GramCover team has understood the key nuances of scaling up the non-urban segment of insurance distribution which is a gigantic opportunity in India. With a solid end-to-end deep technology platform, in conjunction with a human-assisted local agency network, we feel GramCover is well-positioned to continue its high-growth trajectory. Further, the business model helps achieve the twin objectives of profitable growth and providing livelihood risk protection to a largely rural population of India.”
Pratip Mazumdar, Partner of Inflexor Ventures, said, “Our investment in GramCover stems from Inflexor’s conviction in backing technology-led enterprises, working towards deepening the insurance penetration to create a meaningful impact in a large, under-insured market. We believe GramCover will play a pivotal role in radically transforming the insurance landscape of Bharat.”
The insurtech startup strives to insure more than 10 million farmers in the next two to three years, with a premium target of Rs 10 billion. In this period, it is also looking to strengthen its footprint in states with already a presence, including Bihar, West Bengal, Assam, Uttarakhand, Andhra Pradesh, Maharashtra, etc., and further extend to other states.
Speaking about the funding, Dhyanesh Bhatt, Co-founder and Group CEO, at GramCover, said, “We are excited about our Series A fundraise with seasoned tech-focussed investors like Siana Capital and Inflexor. We at GramCover will be strengthened by their deep-tech domain expertise and their startup experience as we work towards building growth and profitability focussed rural insurtech organization.”
Jatin Singh, Founder and Managing Director, GramCover, added, “My vision of starting GramCover has been to provide a comprehensive cover to rural India. I believe that the security of the village, the cow, the car, the crop, and the disease is our responsibility.”
Unitus Capital served as the financial advisor to the company on the transaction.
GramCover seems to have transformed the lives of several people living in rural India with its unique model. I’m sure the company will continue t reach new pinnacles of success in its journey ahead. My best wishes to the team of GramCover.Shishir Gupta, Founder and CEO, StartupLanes
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