Kalaari Capital and Omidyar Network and Accion Venture Lab have led a $1.5 million seed round in digital-only insurance startup Toffee insurance.
The Gurugram-based startup focused on millennials will use the capital infusion in product development as well as swelling its team size. Besides, it also aims to build a strong insurance-tech team with capabilities across data science, machine learning, and artificial intelligence.
Founded by Nishant Jain and Rohan Kumar, Toffee is a technology platform focused on providing contextual and relevant insurance offerings to a growing youth demographic.
Toffee Insurance offers small ticket size insurance products and claims to take less than 90 seconds and simple claims are processed in under two hours via its digital interface.
The startup has a composite corporate agent licence and offers insurance coverage in the area of health, lifestyle and personal accidents with a core focus on simplicity and includes products such as StayFit Toffee, Anti-Dengue Toffee, Globetrotter Toffee, Renter Toffee, Commuter Toffee, Backpacker Toffee, etc.
Currently, it works with major insurance providers and underwriters such as Apollo Munich and Ergo, to provide tailor-made policies.
Previously, the startup had raised $100K angel fund (Crunchbase) from Vivek Gujral, co-founder of OneShield Inc in 2017.
Of late, another digital-only insurance startup Acko raised $12 million Series A round led by e-commerce giant Amazon. New investor Ashish Dhawan, the founder of PE firm ChrysCapital and existing investor Catamaran Ventures, owned by Narayana Murthy, also participated in the funding round.
The development was first reported by Moneycontrol.