Insurtech firm Zopper has raised $75 million in its series C funding round led by Bengaluru-based venture capital firm Creaegis with participation from ICICI Venture and Bessemer Venture Partners.
Existing investor Blume Ventures also participated in the round. The company plans to develop its SaaS platform with more hirings in its data and research team.
Zopper plans to use the fund raised to bolster its SaaS platform and data analytics capabilities, build a next-generation data engineering team, fuel business development initiatives, undertake inorganic growth and explore opportunities in the international market.
The funding comes after almost eight years from its last round from Tiger Global in 2015 where it raised around $20 million. In fact, in 2018, payments company PhonePe bought the point-of-sale (PoS) business of Zopper, which then shifted its focus to Insurance SaaS development.
"Our aim is to touch $500 million of gross premiums by 2024 and we are also very excited to get into partnerships to expand our operations in other geographies," said Surjendu Kuila, Co-Founder and CEO of Zopper to Moneycontrol in an interaction. The firm is also planning to hire more than 200 employees, especially in the data engineering and software development teams by the end of the next year, Kuila said.
In FY22, the company’s gross premiums were around Rs 340 crores (around $44 million), and in FY23 the company plans to clock around Rs 1,000 crore of gross premiums (around $125 million), Kuila told.
“We are raising funds after almost 8 years as we saw a big opportunity in this space and wanted to double down on growth in the insurance space…it took some time to get a product market fit and last year we realized there is a huge scope and there are hardly any competitors” Kuila added.
Founded in 2011 by Surjendu Kuila, Neeraj Jain, and Mayank Gupta, Zopper is an embedded insurtech platform that aims to revolutionize insurance distribution via its SaaS platform, deep integration layer, and data analytics capabilities.
The firm claims to have around 150 partners such as Amazon, Ola, Xiaomi, Croma, Hitachi, Equitas Small Finance Bank, and Chaitanya Group and a presence in over 1200+ cities. Zopper basically helps B2B and B2C organisations to offer various insurance products and provides end-to-end technology and service offerings to insurers.
The company offers corporate, motor, life, and health insurance through its SaaS platforms.
Zopper is also looking to grow inorganically and plans to venture into other geographies including Southeast Asia. “We have some plans to partner and acquire tech startups which are on the drawing board and will take place over the next few months,” Kuila said.
“At least in the next one year the focus will just be India and we have a lot of technology pipelines to be laid, unlike the payment and lending space, Insurance has not seen much tech innovations… We will also look at international expansion, only through our clients and partnerships,” he added.
The company is also eyeing an IPO in the next five years. “We may go for an IPO in the next five years given the market conditions are suitable, however, we would also work towards achieving at least $1,000 million of gross premiums,” Kuila said.
The company has so far raised around $100 million. “We truly believe in Zopper’s vision of transforming and automating the insurance distribution model in India. Over the years, they have demonstrated their tech and product innovation value to their ecosystem partners and insurers,” said Prakash Parthasarathy, Managing Partner, Creaegis.Zopper closely competes with the companies like Riskovery and CoverGenius.