Onsurity, an insurance tech platform in India, has raised $16 million in a Series A funding round led by fintech investor Quona Capital and its previous investor Nexus Venture Partners. 

The financing bout was also participated by Vivek Garipalli, CEO of Nasdaq-listed Clover Healthcare; Amrish Rau, CEO of Indian merchant platform Pinelabs; and Sweta Rau, founder of Indian equity firm White Ventures.

WHAT IT DOES

Founded last year, the employee benefits platform targets SMEs and startups. It offers a monthly-based subscription to health benefits under TeamSure which comprises group health insurance, discounts on medicine orders and health checks ups, fitness rewards, doctor teleconsultations, among others. The subscription plans are offered not only to full-time employees but also to contractors, interns and consultants. 

Onsurity was quoted in a news report as saying that small enterprises employing 3-100 employees in India have not traditionally provided cheap health plans. The company stated it intends to provide "affordable and accessible" health benefits and insurance to over 35 million small businesses and startups across the country that employs above 150 million people.

WHY IT MATTERS

In a blog post, the company said it plans to use its fresh funds to invest in healthcare technology "to ensure that [the] employee healthcare space becomes a lot more accessible and inclusive".

The company is targeting to reach over 10 million employees and their families via SME partnerships over the next five years and hit a client base count of 10,000 by yearend from around 1,300 small enterprises presently.

THE LARGER TREND

There are over 110 insurtech firms operating in India, according to the Insurance Regulatory and Development Authority of India. Based on research by S&P Global Market Intelligence, India is the second-largest insurtech market in the Asia-Pacific region, cornering 35% of the $3.66 billion insurtech-focused venture investments. 

Also in the Asia-Pacific region, Chinese insurtech company Waterdrop went public in the US last May. It raised $365 million in its IPO, which will be used for its business expansion and product enhancement. 

ON THE RECORD

"We feel gratitude towards our investors for continuing their support. The fact that we are one of India’s very few companies to have their customers turn into investors and one that has backing from notable institutional investors is proof in itself that we are in the right direction towards bringing a reformative change in the employee healthcare space," Yogesh Agarwal, founder and CEO of Onsurity, said. 

"We are grateful for the support that we continue to receive from our investors and customers. I am sure together we will bring the essence of true care back in employees’ healthcare while making it affordable and technologically convenient for the employers to ensure their employees’ wellbeing," Onsurity Co-founder and COO Kulin Shah also said.