Insurtech startup Bimaplan raises $3.5 mn in pre-series A funding round

Company will use the money to improve technology platform, expand distribution

Bimaplan, a start-up in insurance technology, has secured $3.5 million in a funding round led by Orios Venture Partners and attended by existing investors Finsight Ventures and 2am VC.

The pre-series A funding raised the total investment secured by Bimaplan to $6 million. The company, which is backed by start-up accelerator Y Combinator, said it will use the new funding to improve its technology platform as it launches new products for customers. The company aims to strengthen its distribution network by expanding channels and launching new verticals.

“With this new funding, we endeavour to build a sustainable and profitable distribution network, removing the inefficiencies across the value chain with our strong technology suite. We are grateful to both our existing and incoming investors for helping us move closer to our goal of insuring 10 million lives in the next 2-3 years,” said Vikul Goyal, founder and chief executive officer of Bimaplan.

The company, which is based in Mumbai and Bengaluru, has a 50-member team. It plans to hire across product, technology, and sales departments.

Bimaplan works with organisations serving rural and semi-urban customers as a channel partner to sell insurance products.

“Insurance penetration in India has been historically low compared to the west presenting a massive opportunity. However, building insurance products for the semi-urban population belonging to Tier 2 towns and above has proved to be challenging with online channels accounting for just 2 per ccnt of the premiums collected. With their deep understanding of the sector and product first thinking, Bimaplan seems to have cracked the code for building insurance products for Bharat,” said Sukhmani Bedi, partner at Orios Venture Partners.

India’s insurance penetration is at around 4 per cent of GDP, below the global average of 7 per cent, said Bimaplan.

Nearly 400 million Indians do not have access to any insurance, but the industry grew at a 17 per cent compound annual growth rate (CAGR) in the last two decades. Bimaplan said it aims to address this gap.

A couple of other insurance technology companies have raised funds too recently.

InsuranceDekho raised $60 million in October in its ongoing Series B funding round. The same month Onsurity announced raising $24 million in a Series B funding round.