Insurtech startup InsurancePadosi raises $500,000 in a pre-Seed round

Indian insurtech startup InsurancePadosi has raised $500,000 (or around Rs 4.19 crore) in a pre-seed funding round led by global early-stage venture capital firm Antler.

The round also saw participation from prominent industry figures such as Hemant Kaul, former CEO and MD of Bajaj Allianz, and Satish Pillai, former CEO and MD of TransUnion CIBIL. 

Focusing on bridging the gap in India’s insurance market

Founded in 2023 by Vaibhav Kathju, Abhay Singh, and Gaurav Gupta, InsurancePadosi aims to simplify the insurance buying process for consumers.

The Indian insurance market, which is valued at over $20 billion in gross premiums with 50 million new policies sold annually, remains under-penetrated with a penetration rate below 4% of GDP.

The startup seeks to address this gap by offering a seamless and transparent experience for customers, ensuring they can make well-informed decisions about their insurance needs.

InsurancePadosi’s offerings

InsurancePadosi offers the Insurance Health Report (IHR), an AI-driven tool that empowers users to make informed decisions by providing a personalised, unbiased analysis of their insurance requirements.

By answering a few simple questions, users receive a tailored analysis of their insurance requirements, enabling them to secure optimal coverage.

The startup claims that its system can reduce the average insurance purchase time from 70 minutes to just 3-5 minutes, with a 95% accuracy rate in matching products to individual needs.

"After surveying over 1,000 health insurance holders, we discovered that more than 85% were significantly underinsured, despite having policies in place. In response, we’ve developed a system that reduces the average insurance purchase time from 70 minutes to just 3-5 minutes, with a 95% accuracy rate in matching products to individual needs," CEO Vaibhav Kathju said.

Enhancing the technology platform

The startup plans to use the raised capital to strengthen its technology platform, expand product offerings, and enhance sales and marketing efforts.

Additionally, It plans to venture into underwriting and claims management, providing a comprehensive, end-to-end customer experience.

“Our mission is to empower individuals with the right insurance coverage, ensuring they make informed decisions based on highly personalized recommendations. Backed by esteemed investors, we are poised to reshape the insurance landscape," Kathju added.