Insurtech startup Riskcovry has raised around $4.5 million in a bridge round of funding led by Dubai-based business-to-business fund Morphosis Venture Capital, according to ETtech report.
Indian financial services player IIFL also participated in this round, a statement said.
The round has a small secondary component which offered liquidity to some of its employees and exit to early investors.
A bridge round in venture capital parlance is typically a small round between two major investments which can help a company move towards a set financial goal.
Riskcovry plans to use these funds to push towards profitability and eventually close its series B round of funding.
“With this small round in place we intend to achieve cash profitability on a base of $25 million (Rs 200 crore approximately) in gross written premium processed per month, post which, we might raise a healthy Series B,” said Chiranth Patil, cofounder, Riskcovry.
The Mumbai-based startup, founded in 2018 had till date raised around $6.8 million from the likes of Omidyar Network India, Pentathlon Ventures, Bharat Innovation Fund and others, Tracxn data shows.
It offers a technology platform which can help build insurance distribution capabilities for enterprises.
Riskcovry has around 40 customers across banks, home finance companies, non banking finance companies, startups and even original equipment manufacturers out of which 55% are already live and the others are in the process.
“We have an embedded insurance product which can help any company distribute insurance products, we also have a product for insurance against lending, as most lenders already attach insurance to protect their loan exposures as a standard practice,” said Patil.
“More than 80% of our current revenue comes from the per transaction revenue model, but more and more customers are moving towards an API based payment model which is healthier,” Patil said.
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