Riskcovry Raises $4.5 Mn in Bridge Funding Round Led by Morphosis Venture Capital

• ByStartupStory     |    January 8, 2024

Mumbai-based insurance tech startup Riskcovry has successfully raised approximately $4.5 Mn (INR 37.3 Cr) in a bridge funding round, with Morphosis Venture Capital leading the investment alongside participation from IIFL. The funding will play a crucial role in the company’s journey towards profitability and its subsequent Series B round of funding, as reported by ET.

According to Chiranth Patil, Riskcovry’s co-founder, the funding will enable the company to achieve cash profitability with a target of $25 Mn (INR 200 Cr approx) in gross written premium processed per month. Once this milestone is reached, the company plans to pursue a robust Series B round.

The bridge round includes a component dedicated to providing liquidity to employees and offering an exit to early investors. Riskcovry, founded in 2018, operates on an ‘insurance-in-a-box’ model, providing insurance infrastructure for platforms and vendors seeking to offer insurance products.

With total funding of around $6.8 Mn, the startup has secured investments from Omidyar Network India, Pentathlon Ventures, Bharat Innovation Fund, and others, as per Tracxn data. Riskcovry serves a diverse clientele, including banks, NBFCs, retail, payment networks, digital, telecom, fintech, and tech startups, enabling these entities to offer digital insurance products and services to end-customers.

The company currently has approximately 40 customers across various industries, with 55% already live and the remainder in the process. Revenue generation primarily relies on a software-as-a-service (SaaS) model and per-transaction revenue for successful insurance product purchases. Additionally, Riskcovry employs an API-based payment model, with over 80% of current revenue derived from the per-transaction model.

In 2021, Riskcovry secured $5 Mn in Series A funding led by Omidyar Network India. The startup aims to achieve a revenue of INR 30 Cr by the end of the current financial year, marking a significant five-fold increase from the previous year. Notably, it processed approximately INR 1,500 Cr in written premium in the last calendar year, compared to around INR 100 Cr in 2021.

The Indian insurance market is poised for substantial growth, with an estimated valuation of $200 Bn by 2027, positioning itself as the ninth-largest life insurance market globally. As of February 2023, the insurance industry in India has reached a valuation of INR 59 Cr ($7.1 Mn), according to IRDAI.

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