Indian insurtech startup Onsurity said that they have raised $24 Million in its Series B funding. It is led by the World Bank’s IFC – International Finance Corporation. Additional existing investors are Nexus Venture Partners and Quona Capital. Onsurity is a healthtech company that provides healthcare to employees of SMEs, MSMEs , startups and businesses.
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Onsurity was founded in the year 2020, and is a Bengaluru based startup. It was founded by Yogesh Aggarwal and Kulin Shah.The startup aims to democratise technology,by giving everyone from entrepreneurs to small businesses, a chance to ensure their employees have access to best of healthcare.The positive aspect is to increase employee retention , productivity ,attract talent and enable SME -small and medium enterprises,to build a happier workforce.
The motive is to provide healthcare solutions to MSMEs -Micro Small and Medium Enterprises ,and bring them at par with large corporations without any extra burden,said the company website. It provides monthly subscription-based insurance solutions.
Currently ,it has worked with 5000 companies spread across 26 states and 3 Union territories of India. The companies include CleverTap,DBS Bank, Sattva,Jupiter Money,Zepto, Porter,Sobha Developers among others.
Significance of the startup
SMEs employ 60 million people, creating 1.3 million jobs every year,and the sector expects growth. There exists a large chunk of the population relying on MSMEs and small businesses for their livelihood. The traditional players offers retail health insurance catering to a large population ,and cannot Target onto the enterprise customers. This is also seen by the Economic Survey of 22-23 with insurance penetration being only 4.2 percent in 2021.
The startup is designed to focus on small scale and emerging businesses.
Utilisation of the fund
The aim is to grow the customer base to over 50,000 companies ,and covering about 5 Million lives by 2026, co-create a technology solution for seamless and transparent transactions. With a view to eliminate prolonged waiting periods and uncertainty associated with claims,the startup aims to build an Artificial Intelligence (AI) powered claiming process. This will provide a transparent ,fully digital experience to the consumers.
In India , Onsurity became the fastest new age technology platform to serve one Million lives.
The new funds will enable the extension of insurance coverage to a larger spectrum of MSMEs,said Yogesh Aggarwal, founder and CEO of Onsurity.
The funds would supercharge their mission of crafting one of the finest tech led distribution stacks in the industry,said Kulin Shah,Founder and CEO of Onsurity.
Any business irrespective of their strength would be providing their employees with access to health checkups,doctor consultation, discount medicines and fitness membership among other services.It offers an overall distinctive experience to enterprise customers with a complete healthcare package said Mr.Aggarwal.
Onsurity has also partnered with hospitals directly for a seamless solution of customer claims and boost in healthcare integration.More than 80 percent of the business purchasing subscriptions for their employees ventured into employee health care for the first time, claims the startup.
The range of product also includes cyber risk insurance so that businesses can protect their online presence with specific coverage on privacy and security breach issues. Commercial general Liability Insurance is also offered. To support small businesses in navigating modern challenges these products are provided.
According to Wendy Werner,IFC country Head,India, availability of insurance coverage is vital for economic risk management and bolstering social security. The recent funding underscores the dedication of a technology platform which improves the accessibility of employer sponsored health insurance services. Health care and their expenses out of pocket can pose a significant burden for employees of SMEs .This health Insurance helps them manage their expenses while also supporting their employees.