Digital insurance broking startup McXtra has raised $1.3 million in its pre-Series A round from a clutch of 12 investors. The fresh funds will be allocated towards scaling up the company’s tech platform and reach out to more users.
Founded by A S Narayanan and Nimish Airon, McXtra is an insurtech platform that enables users and their families to consolidate all their insurance policies in a secure vault. It offers insurance services and assistance across health, motor, life, travel and home insurances.
Available on Android and iOS App Store, the app claims to have partnered with 30 corporate entities and is targeting their 1 lakh user base for their product.
The Mumbai-based startup looks to tap data, risk assessment and the ability to offer the right solution by leveraging AI, big data, data analytics to predict consumer behaviour and real-time risk assessment.
Some notable startups in this space including PolicyBazaar (now Unicorn), Coverfox and Acko have been leading the market. While PolicyBazaar raked in $236 million from Softbank, Acko and Coverfox have also bagged $12 million (from Amazon) and $7 million (from IFC and Transamerica) respectively.
According to the India Brand Equity Foundation report, the insurance industry of India consists of 57 insurance companies of which 24 are in life insurance business and 33 are non-life insurers. As far as the marketsize is concerned, the overall insurance industry is expected to reach US$ 280 billion by 2020.
The report also clarified that demographic factors such as growing middle class, young insurable population and growing awareness of the need for protection and retirement planning will support the growth of Indian life insurance.
Insurance brocking startups such as McXtra and others have a huge opportunity to grab a sizeable marketshare in the growing insurance-tech segment.
The development was reported by ET.