Indore-based business insurtech startup BimaKavach has secured $2 million in seed funding led by WaterBridge Ventures, with participation from Blume Ventures, Arali Ventures, and Eximius Ventures.
The company aims to utilise the funds to design new-age business risk covers, invest in its proprietary risk management technology, and scale the business and teams.
“In India, nearly 95 per cent of startups/MSMEs are uninsured. Most businesses do not realize that having the right insurance coverage is key to their company’s financial health and success. Insurance is still treated as a sunk cost or an obstacle rather than a tool for sustained growth,” said BimaKavach Founder Tejas Jain.
“We want to fix commercial insurance from scratch by building suitable startup and SME-focused insurance products and automating risk assessment and pricing tools for commercial risks to reach many businesses. The idea is to make businesses aware of their insurances and get them covered transparently at the right time, with appropriate covers at fair pricing,” he added.
BimaKavach is a platform that enables companies to discover, buy and manage insurance online, thus helping to build an effortless and accessible ecosystem of commercial insurance. It aims to ease the tedious process of procuring insurance, lengthy paperwork, unexplained jargon and long turnaround times.
Through its platform, BimaKavach offers a variety of insurance product suggestions, such as Fidelity Insurance, Cyber Risk Insurance, Directors & Officers Insurance, Errors & Omissions Insurance, General Liability Insurance, and Product Liability Insurance.
BimaKavach platform recommends insurance products by answering six simple questions to cover the custom needs of businesses depending upon its nature of risks, size etc.
The company’s early adopters include CleverTap, CoinDCX, and FinBox and listed enterprises such as Rama Phosphates, Flexituff Ventures, and Commercial Syn Bags.
BimaKavach soon plans to launch co-created commercial insurance products with the country’s top insurers for SMEs and startups to offer only appropriate covers and not give a template solution.