Exclusive: Pazcare raises Series A round led by JAS Fund

Bengaluru-based employee benefits and insurtech startup Pazcare has raised Rs 62 crore or $8 million in its Series A led by JAS Fund. With this, the company has mopped up $11.5 million since October.

Pazcare has passed a special resolution to allot 3,755 series A CCPS at an issue price of Rs 165,705 per share to raise 62 crore, the company’s regulatory filings with Registrar of Companies show.

JAS fund spearheaded this round with Rs 26.6 crore while existing investors 3One4 Capital and Beenext Asia invested Rs 22.88 crore and Rs 11.45 respectively. A clutch of individual investors including Haresh Chawla, Ashish Hemrajani and Vaibhav Jain have collectively invested Rs 1.29 crore.

Following the allotment of this round, JAS fund holds 7.65% while 3one4 Capital and Beenext Asia own 14.42% and 15.79% stake respectively. Co-founders: Sanchit Malik and Manish Mishra holding diluted to 47.48% post Series A.

As per Fintrackr’s estimates, Pazcare has been valued at around Rs 370 crore or $48 million (post-money) in this round.

Pazcare enables employers (startups, SMEs) to buy group health and term insurance policies. The 12-month-old company had raised $3.5 million (Rs 25 crore) in a seed round co-led by BEENEXT, 3one4 Capital and several angels such as Kunal Shah, Aprameya R, Ashneer Grover and others.

Currently, the corporate health and wellness market in the country is approximately valued at about $7 billion and is slated to cross $18 billion by 2025. The growth of corporate insurance has increased multifold after Covid.

The Bengaluru-based company majorly competes with Tiger Global-backed Plum, Nova Benefits and OnSurity among a few others.

While Plum and OnSurity had raised $16 million each in their Series A round last year, Nova is in talks with existing and new investors to raise $30 million in Series B round. Entrackr had exclusively reported about Nova’s potential round in May.