Fin+InsureTech startup Finsall raises Rs 15Cr funding led by Unicorn India Ventures, Seafund

Insurance-First BNPL startup Finsall has raised Rs 15 crore in a bridge funding round led by Unicorn India Ventures and Seafund with participation from other institutional investors.

“This interim bridge round will help us focus on scaling our books and taking a huge leap forward in creating an NBFC in the insurance premium financing industry. Building a category is no easy task, especially in the lending and insurance space," said Tim Mathews, Co-Founder and CEO of Finsall.

What does Finsall do?

Founded by Promod Khanna, Tim Mathews, and Prabal Khanna, Finsall (Financing Insurance for All) is making insurance premium financing affordable and accessible. It is an insurance-first BNPL, creating a new lending category. 

“Insurance premium financing remains a nascent sector but in the last 2 years, specially post covid, there is a strong customer acceptance of this model," said Anil Joshi, Managing Partner, Unicorn India Ventures.

Unlike fintechs that target a specific customer segment, such as salaried, self-employed, MSME, etc., Finsall serves a “universal set of customers” through its lending solutions, ranging from HNIs to gig economy individuals and SMEs. 

What is the purpose of fundraising? 

The startup plans to use the raised capital to set up an NBFC, scale lending operations, and deliver more value to its customers in insurance premium financing.

Additionally, the funds will also be allocated for tech enhancement with an aim to develop intuitive, user-friendly interfaces to provide seamless digital experiences for key stakeholders including insurance companies, brokers, agents and lending partners (Banks and NBFCs).

It also aims to use the current capital infusion to develop more strategic partnerships with insurers, intermediaries, and lenders to broaden service offerings and enhance distribution channels.

"We are glad that we have a great core team and long-term investors in Unicorn India Ventures and Seafund who believe in the vision that we are building at Finsall. We have several financial inclusion and lending solutions that will make a difference for those who wish to protect themselves, their assets, and their loved ones. We aim to build on domestic success stories and examine if our products make global sense," Mathews said.

FInsall market presence

Finsall claims to have seen 9X revenue growth over the last 2 years and to serve customers across 8,000 locations in India. 

"Insurance providers to the end users are now comfortable with an option to use credit for financing insurance premiums. Given that insurance penetration in the country is still at 1%, the market opportunity is huge and we believe Finsall has built the right momentum to capitalise on this segment," Joshi added.

Commenting on the growth of the company, Manoj Agarwal, Managing Partner, Seafund, “We have been invested in Finsall from its early days and have seen the first hand focus of the team on improving the customer retention rates, loan size and tenures and underlying financial asset quality. This has led to a healthy growth. As Finsall onboards more insurance providers and agents, we see the market growing really fast for them.”

It has launched the Credit as a Service (CaaS) platform, a plug-and-play model designed to help its customers benefit by simply choosing the insurance products they need to offer credit for without the complexity of building separate credit or lending software systems.