Bengaluru-based Finsall, an insurtech startup focused on providing insurance premium financing, has raised Rs 12 crore (or approx. $1.6 million) in a new pre-Series A round to scale its technology platform to expand its market share in the insurance premium financing market.
The round saw participation from existing investors – Unicorn India Ventures and SEA Fund – along with a clutch of other investors, the startup said in a statement. Unicorn Indian Ventures is widely known for its investments in high potential fintech companies like Open Bank and SmartCoin.
Founded by Promod Khanna, Tim Mathews, and Prabal Khanna, Finsall provides access to funds for financing insurance premiums through its proprietary technology platform. The platform connects customers, insurance intermediaries, insurance companies, banks, and NBFC’s with an aim to increase insurance penetration in the country.
With this round of investment, The insurtech startup will partner with new insurance partners to increase its market share in the insurance premium financing market. “We currently have customers in more than 500 cities pan India with a special focus on under-banked and underserved rural pockets," Tim Mathews said.
The company will also be looking to enter into lending partnerships with top banks and NBFCs firms. "We have also opened financing for multiple products within the insurance industry to continue our scale up and build a strong business model," Tim added.
Previously, Finsall had raised Rs 2.4 crore in a seed round in January 2021, led by UIV and SEO Fund with participation from Karthik Sridhar (CEO of SupplyAI) and Tirumala Gudla (Former 3M and Tech Mahindra executive).
"Since our first investment in the company, it has grown 70% m-o-m and added capabilities in its platform. We are seeing strong business traction and pipeline of customers, which is why we have decided to invest in them further," Anil Joshi, Managing Partner, Unicorn India Ventures.
According to the company's statement, Finsall has opened up financing for other insurance premiums in addition to catering to retail customers in motor and health insurance. It has now expanded to address the MSME sectors’ needs for premium financing, it says.
Speaking on the investment, Manoj Kumar Agarwal, Managing Partner, SEAFUND, said: "We invested in Finsall when it was in the early stages of development of its technology platform and the team was developing a product-market fit. The founding team had a great mix of young and experienced founders and was working on a unique strategy to address a perennial problem in Insurance in India."
"As a fund, we track and back Insurtech and we believe that Premium Financing is an enabler for higher insurance sales and Finsall is able to cater specifically to the problems faced by this customer segment," Manoj added.
At present, The General insurance industry is a Rs 2 lakh crore market. Finsall aims to be a market leader in this segment for providing insurance premium financing as the preferred payment option for the under-insured and uninsured population in India, it adds.