Indore-based BimaKavach, a business Insurance tech Start-up, has raised USD 2 MIllion in seed funding led by WaterBridge Ventures, along with Blume Ventures, Arali Ventures and Eximius Ventures. The company said that it will utilise these funds for designing new-age business risk covers, investing in its proprietary risk management technology and scaling business and teams.
Tejas Jain, Founder, BimaKavach said, “In India, nearly 95 per cent start-ups and Micro Small and Medium Enterprises are uninsured. Most businesses do not realise that having the right insurance coverage is a key to financial health and success of their company. Insurance is still treated as a sunk cost or an obstacle rather than a tool for sustained growth. We want to fix commercial insurance from scratch by building suitable start-up & SME-focused insurance products, automating risk assessment and pricing tools for commercial risks in order to reach a large number of businesses. The idea is to make businesses aware of their insurances and get them covered transparently at the right time, with appropriate covers at a fair pricing”.
Anjali Sosale, Partner, WaterBridge Ventures, said “Business insurance is a technical and complex product, and the entire buying process, from understanding the coverage to claim processing, is unorganised and offline. BimaKavach fills this gap by using a digital first platform and exclusive underwriting models to design bespoke covers for MSMEs. India has less than 1 percent general insurance penetration compared to the global average of 4 percent. We are bullish on the insurance sector's expansion and were impressed with Tejas' deep domain knowledge and network. We're certain the team will continue to scale and change the way Indian businesses buy commercial and general insurances."
BimaKavach is also working on an end-to-end start-up and SME focused platform to make business insurance digital, simple and transparent for companies. The other part of the problem is the tedious process of procuring insurances, lengthy paperwork, unexplained jargon and long turnaround times. BimaKavach has been consciously working towards reducing the steps in this process, thereby benefiting clients and insurance companies with quality of data and much needed thrust. The platform will thereby enable them to discover, buy and manage insurance online, thus helping in building an effortless and accessible ecosystem of commercial insurance
The company’s early adopters include some of India’s fast-growing start-ups such as CleverTap, CoinDCX, FinBox and even listed enterprises such as Rama Phosphates, Flexituff Ventures, and Commercial SynBags. Through its platform, BimaKavach offers a variety of insurance product suggestions such as Fidelity Insurance, Cyber Risk Insurance, Directors and Officers Insurance, Errors and Omissions Insurance, General Liability Insurance, and Product Liability Insurance and many more. BimaKavach soon plans to launch co-created commercial insurance products with the top insurers of the country for SMEs and start-ups to offer only appropriate covers and not give a template solution.
