Gurgaon-based digital-only insurance (Insur-tech) platform Toffee Insurance has raised $1.5 million ( ~ Rs.10 crore approx.) in a round of seed funding led by Kalaari Capital, Omidyar Network and Accion Venture Lab.
The startup will use the freshly raised capital on product development and expanding its team.
Founded in 2017 by Nishant Jain and Rohan Kumar, Toffee is a technology platform aimed at providing contextual and relevant insurance offerings to a growing youth demographic. The startup claims that buying insurance on its platform takes less than 90 seconds and simple claims are processed in under two hours via a completely digital interface.
According to Crunchbase data, Toffee had earlier raised seed capital of $1,00,000 from Vivek Gujral, who is founder of SaaS-based Insurance firm OneShield, in July 2017.
Vani Kola, Managing Director, Kalaari Capital, said the company is on to to create simple and small ticket size insurance products and distribute them in a very contextual way, which has huge potential to drive the mass adoption.
Toffee’s initial lineup of products spans across health, lifestyle and personal accidents with a core focus on simplicity and includes products such as StayFit Toffee, Anti-Dengue Toffee, Globetrotter Toffee, Renter Toffee, Commuter Toffee and Backpacker Toffee, among others.
Rohan Kumar, CEO & Co-Founder, Toffee Insurance, said: “Our goal is to unbundle products and repackage them in a youth-friendly way that focuses on the benefits of insurance to almost make it a commoditised way to sell insurance rather than as a financial product.”
The startup said in a statement to a business daily that it also intends to build a strong insur-tech team with capabilities across data science, machine learning and artificial intelligence.
Notably, Toffee is one of the few Insur-tech startups in India. It may be recalled that, recently Acko Technologies, an another Insur-tech startup based out of Mumbai, has raised $12 million in a funding round led by Amazon Inc.
The above news was first reported in Moneycontrol.
[Top Image – EnterpriseInnovation.net]