Y Combinator-backed insurtech startup Bimaplan has raised $3.5 million in a pre series A funding round led by Orios Venture Partners. Existing investors Finsight Ventures and 2am VC also participated in the round.
This takes the total funding raised by the startup to $6 million.
Bimaplan is an embedded insurance startup that works with financial services companies and ecommerce platforms, helping them with the capability to distribute insurance products to their customers.
It onboards organisations serving rural and semi-urban customers as channel partners, and enables them to sell affordable insurance products through its embedded platform.
The startup claims to have served over a million customers in the two years since it began operations.
With the fresh funds, Bimaplan plans to enhance the features and scalability of its technology platform and launch new products and business verticals to cater to the needs of its customers.
The startup, which has a 50-member team based in Bengaluru and Mumbai, plans to hire across the product, technology, and sales functions to strengthen the organisation.
“The latent demand for insurance is growing, given the large young workforce and an expanding middle class. With this new funding, we endeavour to build a sustainable and profitable distribution network, removing inefficiencies across the value chain with our strong technology suite,” said Vikul Goyal, founder, Bimaplan.
India has a low insurance penetration at around 4% of GDP, with nearly 400 million adult Indians not having access to any kind of insurance. The three-year-old startup wants to address this protection gap and help provide financial security to the under-served segment of the country.
“Building insurance products for the semi-urban population belonging to tier-2 towns and above has proved to be challenging. 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.
