Pazcare, an employee benefits and insurtech platform, said it has raised $8.2 million (around Rs 64 crore) in a Series A funding round led by Jafco Asia at a valuation of $48 million.
Existing investors 3one4 Capital and Beenext participated in this funding round, said Pazcare in a statement.
Pazcare, which is operated by Get Paz Insurance Brokers Pvt Ltd, will use the fresh capital to boost its product line, it added.
Bengaluru based Pazcare ties up with companies to provide insurance to their employees. It has so far insured more than 130,000 employees of companies such as Mindtickle, Mamaearth, Levi’s, CashKaro, and Open Financial, it said. It targets to add around 2000 companies on its platform over the next few quarters. Pazcare also aims to expand its offerings beyond healthcare and be a one-stop shop for all kinds of employee benefits in the coming years, it added.
Prior to this funding, the startup raised seed round of $ 3.5 million in October last year. The seed funding was co-led by Beenext, 3one4 Capital, and several angel investors such as Haresh Chawla (True North), Ashish Hemrajani (Bookmyshow), Kunal Shah (Cred) and Deepak Diwakar (Mindtickle).
Sanchit Malik, CEO and Co-Founder of Pazcare, noted that insurance as a market is going to see leapfrog growth in the current decade.
"We believe health and life insurance penetration will be employer-driven and we want to play an important role in providing world-class benefits to Indian employees," added Malik.
Supriya Singh, Head of South Asia Investments, Jafco Asia, said in the statement that business-to-business (B2B) insurance is a large white space in Asia and Pazcare is well equipped to disrupt this space.
Insurtech platforms have attracted significant early, growth and late-stage funding from investors in the past years. Last year, PB Fintech Ltd, the parent company of insurance aggregator Policybazaar, went public in a sign of maturity for such new age companies.
In April, Turtlemint Insurance Services Pvt Ltd, which runs insurtech platform Turtlemint, raised $120 million (Rs 918 crore) in a Series E round led by Amansa Capital, Jungle Ventures and Nexus Venture Partners.
The same month, healthcare and insurance technology platform, Loop Health secured $25 million in its Series B funding round co-led by General Catalyst and Elevation Capital.
Digit Insurance and Acko turned unicorns with their funding last year, and digital insurance platform RenewBuy also raised significant capital in 2021.
According to a joint report by Boston Consulting Group (BCG) and India Insurtech Association (IIA), funding in Indian insurtech companies more than doubled to $800 million in 2021.
