Bimaplan, an affordable insurance platform for the next billion Indians, has raised $500 K seed round of funding from Titan Capital and other marquee groups of investors. The funding saw participation from Y Combinator, Dream Incubator, RaSa Future Fund, Finsight Ventures, 2 a.m. Ventures, Rajesh Sawhney of GSF Accelerator, Anupam Mittal of, Kunal Shah of Cred, Jitendra Gupta of Jupiter neo-bank, Ramakant Sharma, Ritesh Malik of Innov8,Roshan Abbas, PallavNadhani, Abhishek Rungta, Nisarg Shah, Yash Jain of Sparrow Capital, and Nimesh Kampani and Shanti Mohan of Letsventure. The start-up will use the funds to build the team and to develop the product. This will help the company achieve a $1 Million ARR in the next 12 months.

Founded by Vikul Goyal, Bimaplan is working with insurers to create over the counter, low premium insurance products ($5-50 annually) relevant to the needs of low and middle-income populations. In the past, traditional insurance companies have failed to target low and middle-income groups in India due to high distribution and operational costs and the lack of underwriting data, making it an unprofitable business. With the availability of cheap smartphones and low-cost mobile data, a large percentage of this population is increasingly making digital payments using UPI. Non-metro cities mainly drive this growth of internet users. India has ~700 million internet users, which is expected to reach ~975 million by 2025. Hence, there is a huge opportunity to create affordable insurance products relevant to the needs of this unserved population and distribute them through digital channels. Bimaplan aspires to tap this market potential.

Bipin Shah, Partner at Titan Capital, said, "The growth in internet users and evolution of India stack has made it possible to reach the masses in Tier 2 and 3 cities in India. These new-to-internet customers are making payments using UPI, and adopting digital apps for running their businesses. Bimaplan has the opportunity to leverage this digital literacy and vernacular content to educate the customer and create a seamless and transparent insurance experience."

On receiving funding, Vikul Goyal, Founder & CEO, Bimaplan, said, "More than 150 million Indian households do not have access to formal risk protection or social security. Unexpected events such as illness, accident, job loss, or death of an earning member can push a household into a poverty trap. At Bimaplan, we are creating contextual and affordable insurance plans in partnership with insurers and building a unique distribution using digital channels."

Hannes Chopra, CEO, RaSa Future Fund, and ex-President of Allianz Eurasia, said, "In a more and more uncertain and volatile world, the importance of creating stability and ability to manage risks proactively is increasingly critical. Insurance plays a significant role here. However, intransparent, often expensive, non-digitized products and lack of customer understanding are still traditional in transparent, often expensive products and are the reality with many insurers. This is the pressing and unmet need Bimaplan is addressing. Starting afresh and creating a new insurance experience is a key differentiator in a multi-billion USD market opportunity."

Alexey Garyunov, Partner Finsight Ventures Russia, said, "With insurance penetration of around 3-4%, India is probably the largest underserved market globally. While severalinsurtechs have come up in recent years, they are largely focusing on the higher-end products leaving insurance inaccessible for most Indians. We believe Bimaplan is on the right track to change this with a combination of its unique insurance products and distribution strategy. We know Vikul since his previous venture and are excited to partner with Bimaplan in this journey."

The Y-Combinator backed company’svision is to provide affordable life and health insurance coverage to the 150 million vulnerable households that do not have any formal insurance.

Bimaplan has roped in insurance industry veterans Sanjay Jain, ex-CMO of Bajaj Allianz and Reliance Capital, and Swaraj Krishnan, ex-CEO of Bajaj Allianz and Magma HDI General Insurance Company on its advisory board. The company is in advanced discussions with US and Indian VC funds to raise a pre-Series A round of funding.

About the Founder:

Vikul has extensive experience as a start-up founder and early stage investor inIndia. His previous start-up, Carcrew, was acquired by TVS last year. Prior to that he was partof the core management teams at Craftsvilla, Happyfresh, and Burger King, and worked asan investment professional at Bessemer Venture Partners in India.

Vikul is an MBA from Harvard Business School, and has an undergraduate degree in Mechanical Engineering from IIT Guwahati.

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