Gurugram, India-based insurance technology (Insurtech) firm Toffee Insurance revealed on December 17 that it had secured $5.5 million via a Series A investment round led by IVM Intersurer, Omidyar Network, Flourish Ventures, Accion Venture Lab and Kalaari Capital.
Toffee says it will use the capital raised to further expand its product offering, enhance merchant and customer experience, improve technology infrastructure and distribution efficiency.
Established in 2017, Toffee Insurance was founded by Nishant Jain and Rohan Kumar. The company intends to make insurance products more accessible and affordable by developing innovative solutions in the insurance value chain. Toffee previously acquired $1.5 million (appr. INR 10 Crores) via a seed round led by Kalaari Capital, Omidyar Network and Accion Venture Lab.
Toffee Insurance uses behavioral and consumption data to co-create insurance solutions and abilities enhanced by artificial intelligence (AI), machine learning (ML) and a wide distribution network of more than 4000 point of sale outlets in over 300 cities. Toffee reportedly works with a network of insurance partners including HDFC Ergo, Apollo Munich, and Religare.
An (India Brand Equity Foundation) IBEF report reveals that India’s insurance sector is projected to reach $280 billion by next year. But the digital insurance sector only has a penetration of less than 4% in the $2.4 trillion economy. However, this is expected to grow at around 90% each year. Industry analysts have said that India’s insurance market could potentially absorb several key players. But due to relatively high client acquisition costs and strict regulations, the growth of online insurance providers could be difficult, especially when trying to compete with established players like LIC and GIC.
According to Toffee’s official website, the company has sold more than 115,000 policies, it has approved 98% of claims filed, and it provides coverage in more than 170 cities across India.
The firm’s products include the following “toffees”:
- Backpack insurance for INR 25+ for 6 months
- Daily Cash for INR 449 for 1 year
- Cyclist Insurance for INR 225 for 1 year
- Mosquito Insurance for INR 189 for 1 year
- International Travel Insurance for INR 346 for 1+ day
- Dengue Insurance for INR 682 for 1 year
Other company products can be found here.