Insurtech firm Onsurity raises $24M in Series B led by IFC

Insurtech platform Onsurity has secured a Series B funding of $24 million led by the World Bank's International Finance Corporation (IFC). Existing investors Nexus Venture Partners and Quona Capital also participated in the round.

The company, which is said to be India's first SME-focused subscription-based employee healthcare benefits provider, will use the funds to enhance the insurance claiming experience of users through tie-ups with insurance partners. It aims to eliminate prolonged waiting periods and uncertainties typically associated with claims using artificial intelligence (AI) with a focus on transparency utilisation, Onsurity said in a statement on Monday.

The Bengaluru-based insurtech startup aims to forge partnerships with more than 50,000 companies and provide coverage to over 5 million lives by 2026. A portion of this funding will also be allocated towards the company's efforts to charting its path to profitability, according to the statement.

With the new funding, Onsurity has raised close to $40 million in total.

Founded by Kulin Shah and Yogesh Agarwal in February 2020, Onsurity offers subscription-based healthcare benefits to SMEs (small to medium enterprises), startups, and enterprises. It aims to make healthcare benefits accessible to India's 'missing middle'.

The firm said it has catered to a spectrum of companies, ranging from small teams of three to established businesses with over 1,000 employees. From covering business executives and startup employees to gig workers and their dependents, the company boasts of a diverse and inclusive member base. More than half of Onsurity's members are blue-collar workers while nearly 40% hail from Tier II and Tier III cities.

Onsurity has served SMEs in 26 Indian states and three union territories with over 80% of businesses purchasing healthcare memberships from Onsurity venturing into employee healthcare for the first time, according to the company.

"The fresh infusion of funds will supercharge our mission to broaden our product offerings by crafting one of the finest tech-led distribution stacks in the industry. It underscores our commitment to shaping innovative partnerships, exploring new geographies, and penetrating under-served customer segments," according to Kulin Shah, Founder and CEO of Onsurity.

"The availability of insurance coverage is vital for economic risk management and bolstering social security. Our recent funding underscores our dedication to a technology platform that improves accessibility of employer-sponsored health insurance services," said Wendy Werner, IFC Country Head, India.