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.
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
 in a bridge fundraising round led by Morphosis Venture Capital, with participation from IIFL.){kind=link}