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Bimaplan, a micro-insurance startup backed by Y Combinator, has raised $500 K in series Seed round funding led by Titan Capital.
The fresh round funding also saw the participation from Y Combinator, Dream Incubator, RaSa Future Fund, Finsight Ventures, 2 a.m. Ventures, Rajesh Sawhney of GSF Accelerator, Anupam Mittal of Shaadi.com.
Other investors like Kunal Shah of Cred, Jitendra Gupta of Jupiter neo-bank, Ramakant Sharma, Ritesh Malik of Innov8, Roshan Abbas, PallavNadhani, Abhishek Rungta, Nisarg Shah, Yash Jain of Sparrow Capital, Nimesh Kampani and Shanti Mohan of Letsventure, also participated in this round.
“The startup plans to use fresh funds for expansion of team and product development,” the company said.
Founded by Vikul Goyal, Bimaplan is working with insurers to create over-the-counter, low premium insurance products ($5-50 annually) relevant to the needs of low and middle-income populations.
Speaking on the investment in Bimaplan, Bipin Shah, Partner at Titan Capital, said, “The growth in internet users and evolution of India stack has made it possible to reach the masses in Tier 2 and 3 cities in India. These new-to-internet customers are making payments using UPI and adopting digital apps for running their businesses. Bimaplan has the opportunity to leverage this digital literacy and vernacular content to educate the customer and create a seamless and transparent insurance experience.”
“In a more and more uncertain and volatile world, the importance of creating stability and ability to manage risks proactively is increasingly critical. Insurance plays a significant role here. However, intransparent, often expensive, non-digitized products and lack of customer understanding are still traditional in transparent, often expensive products and are the reality with many insurers. This is the pressing and unmet need Bimaplan is addressing. Starting afresh and creating a new insurance experience is a key differentiator in a multi-billion USD market opportunity,” Hannes Chopra, CEO, RaSa Future Fund, and ex-President of Allianz Eurasia said.
Commenting on the funding, Vikul Goyal, Founder & CEO, Bimaplan, said, “More than 150 million Indian households do not have access to formal risk protection or social security. Unexpected events such as illness, accident, job loss, or death of an earning member can push a household into a poverty trap. At Bimaplan, we are creating contextual and affordable insurance plans in partnership with insurers and building a unique distribution using digital channels.”
“With insurance penetration of around 3-4%, India is probably the largest underserved market globally. While several insurtechs have come up in recent years, they are largely focusing on the higher-end products leaving insurance inaccessible for most Indians. We believe Bimaplan is on the right track to change this with a combination of its unique insurance products and distribution strategy. We know Vikul since his previous venture and are excited to partner with Bimaplan in this journey,” Alexey Garyunov, Partner Finsight Ventures Russia added.