IFC Backs Indian Insurtech Startup Onsurity with $24 Million Funding

Onsurity Raises $24 Million in Series B Funding to Expand Insurance Solutions for Micro, Small and Medium Enterprises

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A Gap Filled by Onsurity

The Indian startup ecosystem has witnessed a significant surge in the last few years, with numerous startups emerging in various sectors. However, there is one area that remains largely untouched – insurance solutions for micro, small and medium enterprises (MSMEs). Recognizing this gap, Onsurity, an Indian startup, has been providing monthly subscription-based insurance solutions to MSMEs, startups, and growing businesses.

Funding Round Led by World Bank’s IFC

Onsurity has raised $24 million in a funding round led by the World Bank’s International Finance Corporation (IFC). The Series B round also saw participation from existing investors Nexus Venture Partners and Quona Capital. With this fresh funding, Onsurity has now raised $40 million in total.

India’s Low Insurance Penetration

India has over 63 million MSMEs, covering close to 400 million employees and supporting 675 million families. However, traditional players predominantly offer motor, retail health, and large corporate insurance programs to cater to a larger population. One key reason for the established insurance companies not focusing on enterprise customers is the country’s low penetration of insurance in general. According to the government’s Economic Survey 2022-23, insurance penetration in India was 4.2% in 2021.

Onsurity Filling the Gap

Onsurity aims to fill this gap with its suite of offerings designed specifically for MSMEs and emerging businesses. It also integrates healthcare and wellness benefits to let enterprises – irrespective of their size – allow their employees to access health check-ups, medical insurance, and other benefits.

Expansion Plans

With the fresh funding, Onsurity plans to enhance its outreach over time and reach more customers. The startup also aims to hire more people to bolster its presence in various cities across India.

Importance of Insurance for MSMEs

The availability of insurance coverage is vital for economic risk management and bolstering social security. Health insurance helps SMEs manage their expenses while supporting their employees.

IFC’s Support

"The availability of insurance coverage is vital for economic risk management and bolstering social security," said Wendy Werner, IFC country head, India. "Out-of-pocket healthcare expenses can be a significant burden for employees of SMEs. Health insurance helps SMEs manage their expenses while supporting their employees."

Onsurity’s Journey
Founded in 2020, Onsurity has been providing innovative insurance solutions to MSMEs and emerging businesses. With its focus on digital platforms and AI-driven decision-making, the startup aims to revolutionize the insurance sector.

Conclusion

With its innovative approach and commitment to providing affordable insurance solutions, Onsurity is poised to make a significant impact in the Indian market. As the startup continues to grow and expand its reach, it will be interesting to see how it navigates the complexities of the insurance industry.

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