Turtlemint, an Indian startup that is helping consumers identify and purchase the most appropriate insurance policies for them, has raised $ 30 million in a new funding round as it seeks to reach more users in small cities and towns in the second largest Internet market. largest in the world.
The new round, the Mumbai-based five-year startup's D Series, was led by GGV Capital . American Family Ventures, MassMutual Ventures and SIG, and existing investors Blume Ventures, Sequoia Capital India, Nexus Venture Partners, Dream Incubator and Trifecta Capital also participated in the round, which brings Turtlemint's total increase to $ 55 million.
Only a fraction of the 1.3 billion people in India currently have access to insurance. According to the ICRA rating agency, insurance products had reached less than 3% of the population in 2017. An average Indian earns about $ 2,100 per year, according to the World Bank. The ICRA estimated that of those Indians who bought an insurance product in 2017 were spending less than $ 50.
A number of startups in India are trying to disrupt this market. Goldman Sachs analysts estimated India's online insurance market to be worth $ 3 billion in a report they recently sent to clients.
Another major reason that existing insurance companies are struggling to sell to consumers is because they depend too much on field consultants.
Instead of bypassing these advisors, Turtlemint is embracing them. Work with over 100,000 of these agents, equipping them with digital tools to deliver broader and more relevant recommendations to consumers and speed up the onboarding process, which traditionally requires a lot of paperwork.
These consultants, who continue to command more than 90% of all insurance sales in the country, "play a vital role in bridging the gap in Tier 2 and Tier 3 cities, where the low physical presence of insurance companies greatly affects hassle-free access to insurance products. and information, "the startup said.
Turtlemint works with over 40 insurance companies in India and acts as a broker, charging these companies a commission for the policies it sells. The startup claimed to have amassed over 1.5 million customers.
"By developing products for micro-entrepreneurs and the nascent middle class, Turtlemint has the opportunity to have a positive impact on the Indian economy," said Hans Tung, Managing Partner of GGV Capital, in a statement. "[Turtlemint co-founders] Dhirendra, Anand and their team have built an amazing platform that empowers over 100,000 mom and pop financial advisors to serve consumers' best interests with digital tools, helping middle-class families in India be insured with the best products available ".
In an interview with ProWellTech, Turtlemint co-founder Anand Prabhudesai said the startup will use the new capital to grow its network of consultants and improve its technology stack to further enhance the experience for consumers. The startup has also developed tools to enable these consultants to reach potential clients digitally.
More to follow ...
