Insurance distribution startup Finhaat has raised $3 million in its first institutional fundraise led by agri-focused venture fund Omnivore and participation from early-stage venture fund Kettleborough VC.
Finhaat operates an online distribution platform dedicated to selling insurance products to consumers in rural and semi-urban regions of India.
The Mumbai-based startup collaborates with more than 60 institutions, including banks, credit societies, non-governmental organizations, and self-help groups. The startup utilizes these partnerships to distribute insurance to the last mile, extending coverage to underserved populations.
“With the fresh funds we will scale up our operations with the target of onboarding one crore customers every year by the end of the next year. We will also be launching basic wellness services, doctor-on-call and the like,” said Vinod Singh, chief executive officer, Finhaat.
Having acquired its broking license in the previous year, Finhaat plans to leverage the recent funding to expand its technology platform, enhance business development efforts, and establish robust internal processes and controls.
The startup, dealing in life, health, and general insurance products, collaborates with various insurance companies, serving almost every major player in the country. Since its inception, Finhaat has catered to approximately 40 lakh customers. Many of its products are marketed as embedded insurance bundled with credit products offered by partner organizations.
“We have built a digital platform which is not meant for only sales and distribution, but also for servicing of claims. Currently, we are processing around 2,500-3,000 claims every month,” said Singh.
He added that the company is approaching a monthly run rate of approximately Rs 20 crore for premium payments processing.
Established in 2021, Finhaat commenced formal operations in June 2022. The founding team includes Sandeep Katiyar, a former executive at ICICI Bank, Navneet Shrivastava, with experience in insurance from Birla Sun Life, Future Generali, and Aditya Birla Health, and Vinod Singh, who previously worked at HSBC Bank.
