Bimaplan, a Y-Combinator-backed insurtech startup, has made headlines by raising $3.5 million (Rs 29 crore) in a pre-Series A funding round. The funding round was led by Orios Venture Partners and saw participation from existing investors Finsight Ventures and 2am VC. 

As per the startup, the freshly raised funds will be used to improve its technology stack, expand its product portfolio, and launch new verticals to improve its reach. 

Including this funding round, the startup has so far raised $6 million.

Bimaplan | Affordable Insurance for the Next Billion Indians

Founded by Vikul Goyal, Bimaplan is an affordable insurance platform that enables its partners to seamlessly provide multiple insurance policies at the click of a button to their customers. The end-to-end digital platform onboards organizations that serve rural and semi-urban customers as channel partners to sell insurance products through its embedded platform.

Speaking about the development, Vikul Goyal, Founder and Chief Executive Officer of Bimaplan, stated that with this new funding, the insurtech startup plans to build a sustainable and profitable distribution network, with aims at removing the inefficiencies across the value chain with its technology suite.

Operated by Coverplan Technology Pvt Ltd, Bimaplan has a 50-member team and plans to hire across product, technology, and sales departments.

Statement from the Investor

Commenting on the development, Sukhmani Bedi, Partner at Orios Venture Partners, highlighted that insurance penetration in India has been historically low compared to the West, which presents a massive business opportunity. Bedi continued and stated that despite the opportunity, building insurance products for the semi-urban population that belongs to Tier-II towns and above has proved to be challenging, underscoring that online channels account for just 2 per cent of the premiums collected. 

Bedi added,

“With their deep understanding of the sector and product-first thinking, Bimaplan seems to have cracked the code for building insurance products for Bharat.” 

InsurTech Ecosystem in India

Currently, there are 436 InsurTech companies in India, out of which 128 are funded, which includes 2 unicorns and 38 Series A+ companies, as per data analysis platform Tracxn. 

Last month, insurance marketplace InsuranceDekho raised $60 million in its ongoing Series B funding round for inorganic growth opportunities and exploring some acquisition targets. The same month, B2B insurtech platform ALWRITE secured Rs 10 crore in a seed funding round to further develop the product and expand the service across the country.

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