AI-powered claims management platform Paramount raises Rs 2.5 crore from Finvolve, India Accelerator

Finvolve, a multi-stage VC fund, has recently invested Rs 2.5 crore in Paramount Services, a digital-first AI Claims-as-a-Service (CaaS) platform transforming motor insurance claims assessment.

The investment marks the startup's first institutional round, structured as a CCPS (Compulsorily Convertible Preference Shares) offering.

Purpose of fundraising

Paramount Services plans to leverage the funding to strengthen its proprietary software, enhance digital claims management capabilities, and expand its presence across insurance companies in India.

Commenting on the investment, Ashish Bhatia, Founder & CEO, IA & Co-Founder, Finvolve said, "Paramount is solving a real and growing problem in the insurance sector—inefficient and costly claims processing. Their technology-led AI model aligns perfectly with our vision to back scalable, impact-driven startups. With digitization and regulatory shifts accelerating in insurance, we see Paramount playing a crucial role in reshaping the motor claims ecosystem."

Market presence

With motor insurance accounting for over 30% of India's General Insurance market and the push towards ‘Insurance for All by 2047’, the demand for fast, digital and cost-efficient claims processing is soaring. Paramount is currently one of the four Digital Service Providers (DSPs) empanelled by PSU insurers under a Government of India initiative to process small-ticket claims up to Rs 50,000.

The startup operates 58 claim hubs across 30 regional offices and is on track to scale up significantly by March 2025.

"As the insurance landscape evolves, claims processing must keep pace. Our goal is to revolutionize motor claims, making them faster, more accurate, and less reliant on manual processes. With IA and Finvolve's support, we'll accelerate tech development, enhance quality control, and drive strategic growth, ultimately delivering greater efficiency and value for insurers and customers," said Naveen Tandon, CEO & Co-founder of Paramount Services.

Paramount, founded by seasoned insurance professionals, leverages a unique blend of industry expertise and AI-driven technology to streamline claims resolution from FNOL to settlement.

The startup plans to attract top talent, develop proprietary AI tools, and expand into emerging markets with growing digital insurance demand.