Riskcovry, a Mumbai-based insurance tech business recently raised $4.5 million (INR 37.3 crore) in a bridge fundraising round led by Morphosis Venture Capital, with participation from IIFL.
According to Riskcovry co-founder Chiranth Patil, the money would allow the company to attain financial profitability, with a target of $25 million (INR 200 crore) in gross written premium handled per month. Once this milestone is attained, the company intends to raise a significant Series B financing.
The bridge financing contains a component for providing liquidity to employees and exiting early investors. Riskcovry, formed in 2018, operates on a ‘insurance-in-a-box’ strategy, giving insurance infrastructure to platforms and suppliers looking to sell insurance products.
For successful insurance product purchases, income generation is generally driven by a software-as-a-service (SaaS) model and per-transaction revenue. Riskcovry also uses an API-based payment mechanism, with the per-transaction model accounting for more than 80% of its current revenue.
In 2021, Riskcovry raised $5 million in Series A funding supported by Omidyar Network India. The firm aims to generate INR 30 crore in revenue by the end of the current fiscal year, a huge fivefold increase over the previous year. Notably, it processed about INR 1,500 crore in written premiums in the previous calendar year, compared to INR 100 crore in 2021.
