Toffee Insurance, an online insurance platform, operated by Gurugram-based Toffcover Core Technologies, has raised $5.5 million in a Series A round, led by IVM Intersurer.
Impact investor Omidyar Network, venture capital firm Flourish Ventures, Accion Venture Lab and Kalaari Capital also participated in the round, according to a company statement.
With this funding, the total amount raised by the company reached $7 million. In May 2018, the company had raised $1.5 million in its seed funding round that was led by Kalaari Capital, Omidyar Network, and Accion Venture Lab.
The fresh funds will be utilised to leverage its core strengths – product technology, customer experience and lateral distribution, the company said.
“Building products that leverage the concept of an online-to-offline insurance sales model is still new in India. In such a scenario, the focus is on a tech-centric model where the POS (point of sale) mechanism can be combined with our data science abilities and create a product-like experience for the customers, from policy issuance to claims,” said Rohan Kumar, CEO & co-founder, Toffee Insurance.
Founded by Kumar and Nishant Jain in December 2017, Toffee Insurance delivers insurance products to its customers. Its tech platform can analyse, predict and customise insurance products for millennials across health, lifestyle and personal accidents.
The startup claims to be using behavioural and consumption data to co-create insurance products and abilities. It reportedly uses artificial intelligence, machine learning and a substantially wide distribution network of over 4000 points of sale outlets across more than 300 cities.
“We are excited about the way Toffee Insurance is successfully breaking down traditional barriers to accessing insurance at scale by leveraging a unique combination of digital and physical capabilities, all in the interests of making insurance more needs-driven, convenient and cost-effective for millions of consumers who were previously outside of the insurance safety net,” said Nic Kohler, managing partner at IVM Intersurer, which is a vehicle of South African investment firm Yellowwoods.
The insurance technology space has seen traction in the past few months. Digital insurance company Acko General Insurance recently received a funding top-up of $20 million from returning investor and Flipkart co-founder Binny Bansal.
Earlier this year, online insurance platform Turtlemint raised $25 million in a funding round led by the Indian arm of global venture capital firm Sequoia Capital.