[Funding alert] Employee benefits and insurtech platform Pazcare raises $3.5M in seed round

Bengaluru-based employee benefits and insurtech platform PazCare on Wednesday announced that it has raised $3.5 million (Rs 25 crore) as part of its seed round, led by BEENEXT, along with 3one4 Capital, and other investors. 

The round also witnessed the participation of angel investors, including Kunal Shah (CRED), Ashneer Grover (BharatPe), Aprameya R (Koo App), Zishaan Hayath (Toppr), and existing investors Ashish Hemrajani (BookMyShow) and Haresh Chawla(True North), among other marquee investors.

In a statement, Sanchit Malik, Co-founder and CEO of Pazcare, said, “Through our world-class tech platform, we are trying to create a real-time user experience, which makes it extremely easy for the employer as well as the employee in personalising and managing their benefits. Over the next three years, we aim to be a leading full-stack employee benefits marketplace and platform that touches the lives of over three million employees."

For Pazcare, which claims to be growing 100 percent month-on-month, these funds will help propel its growth among new categories of customers, accelerating product development, and hiring across all functions.

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Founded in 2020 by Sanchit Malik and Manish Mishra, Pazcare enables real-time management of employee benefits and streamlines them in one place.

"We are glad to collaborate with Sanchit and Manish, second-time founders who are disrupting the fragmented employee benefits space in India in terms of ease of use. We are excited to partner with Pazcare and its global applicability as they demonstrate success with their customers with high NPS," added Dirk Van Quaquebeke, Managing Partner at BEENEXT.

Within a span of just seven months, Pazcare has partnered with over 150 employers, including Betterplace, Vedantu, WazirX, PAYBACK, Mamaearth, and Toppr etc., touching the lives of over 80,000 users currently. The company intends to onboard over 500 corporates over the next two quarters. 

“Sanchit and Manish have a very product-led, unique take on how employee benefits need to be managed and delivered. They have shown amazing vision and product execution so far and we are incredibly excited to partner with them on their growth journey as they scale up this platform,” said Anurag Ramdasan, Partner, 3one4 Capital. 

Pazcare provides employers and their employees with flexible and personalised benefits, like insurance management, mental health solutions, virtual doctor consultations, comprehensive blood tests, etc.

Its employer dashboard and employee app make managing the benefits extremely convenient. Over the coming years, Pazcare also aims to widen its offerings beyond healthcare and be a one-stop shop for all kinds of employee benefits.

The current round of institutional seed investment in Pazcare comes close on the heels of a pre-seed round in June 2021, when the company raised undisclosed funding from angel investors and leading Indian entrepreneurs, including Ashish Hemrajani and Parikshit Dhar (BookMyShow), Haresh Chawla (True North) and Mohit Garg (MindTickle).