Toffee Insurance, an online insurance platform for millennials, has raised $1.5 million in a round of seed funding in a round led by Kalaari Capital, Omidyar Network, and Accion Venture Lab.
Toffee plans to use the funds to focus on product development and expanding its team.
Founded by Nishant Jain and Rohan Kumar, Toffee is a technology platform focused on providing contextual and relevant insurance offerings to a growing youth demographic. The firm claims that buying insurance takes less than 90 seconds and simple claims are processed in under two hours via a completely digital interface.
Toffee’s initial lineup of products spans across health, lifestyle and personal accidents, with a core focus on simplicity, and includes products such as StayFit Toffee, Anti-Dengue Toffee, Globetrotter Toffee, Renter Toffee, Commuter Toffee, Backpacker Toffee, etc.
The company also intends to build a strong insurtech team with capabilities across data science, machine learning, and AI.
Toffee launched its beta platform in December 2017. Currently, the platform is integrated with seven insurance manufacturers to facilitate real-time policy issuance and claims processing.
In a press statement, Rohan Kumar, CEO and Co-founder, Toffee Insurance, said, “We are really excited about the support we have received from Kalaari Capital, Omidyar Network, and Accion Venture Lab. Their belief in our vision will strengthen our capabilities to develop better products across new channels in a scalable form. Our goal is to unbundle products and repackage them in a youth-friendly way that focuses on the benefits of insurance to almost make it a commoditised way to sell insurance rather than as a financial product.”
Vani Kola, Managing Director, Kalaari Capital, highlighting the reason behind choosing to invest in Toffee Insurance. She said, “Insurance is highly under-penetrated in India, and it needs product innovation to reach the masses. The mission Rohan and Nishant are on to create simple and small ticket size insurance products and distribute them in a very contextual way has huge potential to drive the mass adoption. We are very excited to be part of the Toffee Insurance journey.”