India has been rapidly growing when it comes to digital payments, thanks to cheap data rates and innovative platforms like UPI. However, one area where the country is still lagging behind is the Insurance market, and while many solutions have tried to fix Indians’ attitude towards general insurances, the market is still fairly nascent. To help solve this problem and get Indians started on insurances, Bangalore based Insuretech startup Finsall has raised ₹2.4 crores in seed funding.
The round was led by Unicorn India Ventures, and also saw participation from SEA Fund, Karthik Sridhar (CEO, SupplyAI) and Tirumala Gudla (Former 3M, Tech M).
Finsall helps users start their journey with insurances, by providing loans to those who cannot provide insurance premiums upfront. By providing this facility, the startup hopes to provide insurance services to the under-insured and un-insured, which dominate the Indian market. The company provides these loans without asking for a proof of income, collateral security or guarantee. Moreover, the documentation required is minimal. If that’s not enough, Finsall allows you to insure with any partner insurance company, without charging any processing fee.
The company seeks to provide help to anyone seeking to buy a general insurance policy. If a customer is unable to provide the premium for the insurance up front, the insurance intermediary onboards him on the Finsall app. The app then calculates the risk of the customer on its own and offers monthly financing options based upon its assessment.
The idea has never been seen before, a sentiment that is shared by Anil Joshi, Managing Partner, Unicorn India Ventures, who said, “Finsall’s business idea is really first of its kind. We have been working closely with the founding team from their early days. While they understand the product, we have been guiding them on the business and revenue generation. Finsall is leading insurtech innovations and is offering support on a critical element in the insurance journey. Their approach and ease of product design prompted us to invest in the Company.”
As of yet, the company provides its services only in select metro cities in the country. However, with this new found capital, it aims to expand into Tier I and Tier II cities across India.