Jaipur-based insurtech startup Square Insurance raises $3 million in pre-Series A round

Jaipur-based insurtech startup Square Insurance has raised $3 million in a pre-Series A funding round led by Negen Capital and Bizdateup.

The round also saw participation from notable investors, including Yogesh Chaudhary, Founder of Warmup Ventures and Owner of Jaipur Rugs, and Prashant Kothari, Owner of Jaipur Stones.

The advisory for the deal was managed by Cognihub Consultants, led by Rishi Agarwal.

What does Square Insurance do?

Founded in 2017 by Rakesh Kumar, Square Insurance offers comprehensive life and general insurance services across 20 states in India.

The startup claims to have a network of over 25,000 channel partners and a dedicated team of 350 employees. It Insurance plans to open 25-30 new offices in Tier II and Tier III cities, aiming to broaden its reach and impact.

Focused on strengthening technology infrastructure

Square Insurance plans to use the raised capital to strengthen its technology infrastructure, enhancing its AI-driven insurtech platform, which is designed to streamline operations and elevate the customer experience.

A substantial portion of the funding will be directed towards advancing technology for cattle insurance, addressing the critical needs of farmers in rural areas.

Additionally, the startup will invest in developing customized micro-insurance products through collaborations with leading insurers and form strategic partnerships with fintech and e-commerce companies.

Leadership comments

“This funding marks a significant milestone in our journey to transform the insurance landscape with cutting-edge technology and enhanced accessibility. It empowers us to not only refine and expand our insurance offerings but also to reach underserved markets, especially in rural areas where insurance plays a vital role in securing futures," said Rakesh Kumar, Founder and Managing Director of Square Insurance.

"Our commitment is to harness this investment to drive impactful innovations and deliver practical, tailored solutions that truly address our customers' needs. We are excited about the opportunity to bring more value to our clients and ensure that our services make a meaningful difference in their lives," Kumar added.

Investors comment

Neil Bahal, Founder of Negen Capital, highlighted the growth potential in India's insurance sector, stating, “India’s GDP is on the cusp of a multi-year growth trajectory, and insurance is a key, unsaturated area with significant headroom for growth. With Square Insurance, we had a rare, bootstrapped, and profitable InsureTech company that intrigued us."

"The founders’ rich experience and commitment to profitable growth resonated with us. We are proud to partner with Square Insurance and support them in their growth journey,” Bahal said.

“India's insurance industry is a dynamic sector experiencing substantial growth, even facing global challenges like the COVID-19 pandemic, the climate crisis, and the Russia-Ukraine conflict. Currently, the industry is growing at an impressive rate of 32-34% annually. Moreover, the sector has attracted nearly Rs. 54,000 crore ($6.5 billion) in foreign direct investment, driven by the government's progressive relaxation of overseas capital regulations," said Meet Jain, Co-founder at Bizdateup.

"We see tremendous potential in Square Insurance to transform the insurance landscape in India. Their commitment to using technology to make insurance more accessible aligns perfectly with our vision of supporting innovative startups that make a real-world impact. We are thrilled to be part of this journey and look forward to seeing Square Insurance reach new heights," Jain added.