This is Toffee Insurance’s second consecutive raise from four of the five key investors after their initial funding round of USD 1.5 million last year.
Insurance Technology (insur-tech) firm Toffee Insurance has raised $5.5 million Series A funding led by IVM Intersurer along with Omidyar Network, Flourish Ventures, Accion Venture Lab and Kalaari Capital.
This is Toffee Insurance’s second consecutive raise from four of the five key investors after their initial funding round of $1.5 million in 2018.
In an interaction with Moneycontrol, Rohan Kumar, CEO and co-founder of Toffee Insurance said the first round of funds was proof of concept.
"Funding from the current round will go towards expanding the product portfolio and scaling existing business. For instance, we could look at going deeper into our flagship cycle insurance product, where we could offer insurance for accessories such as helmets and GPS units," Kumar added.
Founded by Nishant Jain and Rohan Kumar, Toffee is a platform aimed at providing contextual and relevant insurance offerings to a growing youth demographic. It had its beta launch in December 2017.
The company offers innovative insurance products such as cycle insurance, bag insurance and mobile insurance among others.
Toffee is partnered with nine insurers including Apollo Munich Health Insurance, HDFC ERGO General Insurance and ICICI Prudential Life Insurance among others.
Kumar said that the current round of funding would help their business development plan for the next 18 months. Toffee is an 85-member team of which half of it is the distribution team.
Darshit Vora, Principal at Kalaari Capital said, "Toffee Insurance has a unique model and combines product, technology and distribution to reimagine insurance products in a way never seen before in India."
For instance, Toffee Insurance partnered with outdoor products company Wildcraft to offer bag insurance in India. This backpack insurance will be available with the purchase of any Wildcraft bag worth Rs 1,299 or more. The price of the insurance product is in-built into the bag's final price.
In August 2018, Toffee raised $1.5 million (Rs 10 crore approximately) in a round of seed funding led by Kalaari Capital, Omidyar Network and Accion Venture Lab.The company said in a statement that it intended to build a strong insur-tech team with capabilities across data science, machine learning and artificial intelligence (AI).Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.