Onsurity, an Indian startup that offers monthly subscription-based insurance solutions to micro, small, and medium enterprises (MSMEs), startups, and growing businesses, has secured $24 million in a Series B funding round led by the World Bank’s International Finance Corporation (IFC). The round also saw participation from existing investors Nexus Venture Partners and Quona Capital, bringing the total funding raised by Onsurity to $40 million.
In India, there are over 63 million MSMEs, employing around 400 million people and supporting 675 million families. However, traditional insurance companies typically focus on motor, retail health, and large corporate insurance programs, leaving a gap in coverage for enterprise customers. One of the main reasons for this is the low penetration of insurance in India, which was at 4.2% in 2021 according to the government’s Economic Survey.
Onsurity aims to address this gap by offering insurance solutions tailored specifically for MSMEs and emerging businesses. The startup integrates healthcare and wellness benefits into its offerings, allowing employees of these enterprises to access health checkups, fitness memberships, doctor consultations, and discounted medicines, among other services.
Recently, Onsurity expanded its product line to include cyber risk insurance, providing businesses with dedicated coverage against privacy and security breach instances. The startup also offers other business products such as D&O liability insurance and commercial general insurance.
Yogesh Agarwal, founder and CEO of Onsurity, stated that the company is not competing with large insurance players but rather creating its own category. Agarwal, along with COO Kulin Shah, founded Onsurity in 2020. The startup works with insurance partners and healthcare and wellness service providers to offer comprehensive solutions to its customers.
Onsurity currently serves over 5,000 enterprise customers across 26 Indian states and three union territories, reaching over a million people. The majority of its portfolio consists of SMEs, with a significant portion coming from tier-II and tier-III cities. The startup has crossed over $12 million in annual revenue and projects a 10x growth over the next two years.
With the new funding, Onsurity plans to expand its customer base to over 50,000 companies, providing coverage to over 5 million lives by 2026. The startup also aims to invest in technology to improve its offerings, build an AI engine to propose the right products to specific SME customers, and enhance its outreach to reach more customers.
Source: TechCrunch
Definitions:
– Micro, Small, and Medium Enterprises (MSMEs): These are businesses categorized based on their investment in equipment, plant, and machinery. They play a vital role in the Indian economy, contributing to job creation and overall economic growth.
– Series B funding round: A round of funding in which a startup seeks additional investment after its initial seed and Series A rounds. This funding is often used to fuel the growth and expansion of the business.
– International Finance Corporation (IFC): The World Bank’s private sector arm, which supports private sector development and investment in emerging markets.
– Penetration of insurance: Refers to the percentage of the population that has insurance coverage, indicating the level of adoption and usage of insurance services.
– D&O liability insurance: Directors and Officers liability insurance protects the personal assets of corporate directors and officers in the event of claims alleging financial losses due to their actions or decisions.
– Commercial general insurance: A type of insurance that provides coverage for businesses against property damage, liability claims, and other risks specific to their industry or operations.