Finsall, a Bengaluru-based insurtech startup, has successfully raised Rs 15 crore in a bridge funding round led by Unicorn India Ventures and SEA Fund, along with participation from other institutional investors. The company plans to use the newly acquired funds to establish a non-banking finance company (NBFC) to scale its lending operations and deliver more value to its customers in insurance premium financing.
Funds to Fuel Growth and Partnerships
The funds will also support the development of more strategic partnerships with insurers, intermediaries, and lenders, as well as technological enhancements to create a seamless digital interface for stakeholders. This bridge round follows the Rs 12 crore raised in a pre-series A funding round in January 2022, also led by Unicorn India Ventures and SEA Fund.
Expansion Plans and Revenue Growth
Co-founder and CEO Tim Mathews stated that the company is in discussions with additional investors to raise around $10 million in its series A funding round, expected within the next six to seven months. He emphasized that becoming a regulated entity as an NBFC will enhance confidence among larger players in the lending fintech space and the Reserve Bank of India (RBI).
Founded in 2018, Finsall offers insurance premium financing services and has seen a nine-fold revenue growth over the past two years[3]. The company’s credit-as-a-service (CaaS) platform enables customers to offer credit for insurance products without the complexity of separate software systems[3]. Currently serving customers across 8,000 locations in India, Finsall has significantly grown in the non-life insurance segments and plans to expand into life insurance.
For FY24, Finsall achieved an average month-over-month growth rate of 18% in insurance premiums and aims for a four-fold revenue increase in FY25[3]. With insurance penetration in India still at 1%, Finsall is well-positioned to capitalize on the vast market opportunity.Finsall’s successful bridge funding round demonstrates the growing interest in insurtech startups that offer innovative solutions to the insurance industry. The company’s focus on insurance premium financing and its plans to expand into new partnerships and technologies position it for continued growth in the coming years.