SME focused insurance platform Onsurity raises $16 Mn led by Quona Capital

Employee healthcare platform Onsurity has raised $16 million in a Series A round led by Quona Capital, along with existing investors Nexus Venture Partners. The round also saw participation from healthcare entrepreneur Vivek Garipalli, the founder and CEO of Clover Healthcare. 

The company will use the investment to continue building its healthcare platform and offerings, Onsurity said in a press statement. While the company did not disclose its valuation post the latest funding round, industry sources estimate its valuation in the range of $70-75 million.

“SMBs [small and medium businesses] in India employ 3-100 employees and have traditionally had no access to affordable health plans,” Onsurity said, adding that it aims to offer insurance to over 35 million SMBs and startups across India, which collectively employ more than 150 million people. 

The company, co-founded in 2020 by Yogesh Agarwal and Kulin Shah offers subscription-based services that its customers can purchase and offer it to their full-time employees, contractors, interns and consultants.  

Onsurity had raised close to 2.8 million or Rs 20 crore led by Nexus in April this year. Top tier angels including Kunal Shah, Jitendra Gupta and Gaurav Munjal and several others also participated in its maiden fundraise.

Onsurity directly competes with the likes of Plum Insurance, Secure Now, PazCare and Nova Insurance that also focus on group insurance amongst SMEs and startups. Unlike the traditional insurance companies which were largely catering to corporates and large companies, these startups are solely catering to smaller companies through tech-enabled underwriting and fraud detection algorithms.

Plum Insurance has so far raised $20 million which includes a financing round of close to $16 million led by Tiger Global. According to Fintrackr’s estimate, the company was valued at Rs 630 crore or $87 million in its last fundraise.

Pazcare had raised an undisclosed amount in its seed round in June 2021 from angels such as Ashish Hemrajani, Parikshit Dar and Haresh Chawla. Delhi-based Secure Now had raised about $500K from Elevar Equity and a couple of angels.