Dec. 18, 2019 — Closing the year on a high note, Toffee Insurance successfully secured its Series A funding of $5.5 million led by IVM Intersurer with Omidyar Network, Flourish Ventures, Accion Venture Lab and Kalaari Capital. This is Toffee Insurance’s second consecutive raise from four of the five key investors after their initial funding round of $1.5 million last year.
Founded by Nishant Jain and Rohan Kumar, Toffee Insurance intends to make insurance accessible and affordable by creating relevant single-event products in new categories thereby re-architecting every aspect of the insurance value chain.
The success of this digital-first model so far can be largely attributed to its unique product positioning that not only factors contextual needs of its customers, but also takes care of the typical, often arduous, purchase-to-claim processes. The result is multiple innovative products penetrating through a large-scale distribution network visible in 300+ cities that offers quick and hassle-free insurance experience with claims that are approved within 24 hours of application.
Rohan Kumar, CEO & Co-Founder, Toffee Insurance explains, “Our goal is to unbundle products and repackage them in a consumer-friendly way, focusing on the benefits of insurance to almost make it a commoditized way to sell insurance rather than a financial product” He also emphasized, “Teaming up with like-minded partners really elevates our vision to reimagine risk mitigation relevant to the needs of today’s consumer.”
With this latest round of funding, Toffee Insurance plans to expand and leverage on its three chief avenues – data & product, merchant & customer experience and lateral distribution for the masses.
“We are excited about the way Toffee Insurance is successfully breaking down traditional barriers to accessing insurance at scale by leveraging a unique combination of digital and physical capabilities, all in the interests of making insurance more needs-driven, convenient and cost-effective for millions of consumers who were previously outside of the insurance safety net.” – Nic Kohler, Managing Partner at IVM Intersurer
“Toffee Insurance is creating a unique model combining product, technology and distribution to reimagine insurance products in a way, never seen before in India. In the last year, Rohan and Nishant have proven a strong product-market fit towards this goal. We are excited to welcome IVM Intersurer to the journey. Their vast experience in Insurtech would be of immense value in building a new age Insurtech company for India”. – Darshit Vora, Principal at Kalaari Capital
“Insurance is the last bastion of the fintech revolution and a hard one to crack. Toffee Insurance has created a completely new approach to helping people navigate financial shocks and create safety nets by really unbundling policies to cover those risks that most Indian consumers are worried about. As global fintech investors, this flexible model created by Toffee Insurance is one we want to amplify and replicate in other markets to help solve the global financial health crisis.” – Anuradha Ramachandran, Investments Director at Flourish Ventures
“For customers who have been underserved by the formal financial sector, insurance often seems complicated or inaccessible. Despite the high need for financial safety nets, insurance in India remains highly underpenetrated at less than 4%. At Accion Venture Lab, we’re thrilled to continue supporting the Toffee Insurance team as they develop products and leverage channels to make insurance an intuitive and simple purchase for the uninsured.” – Vikas Raj, Managing Director of Accion Venture Lab
“At Omidyar Network India, we are keen to support business models that improve the financial health of Indian consumers. Toffee cofounders, Rohan and Nishant are trying to simplify insurance – making it easy to understand and easy to buy. Toffee with its differentiated products is helping create a meaningful life for every Indian by providing affordable protection against unexpected financial shocks. We are excited to be a part of their future growth journey.”- Amol Warange, Principal, Omidyar Network India.
In the long run, Toffee Insurance aims to play a substantial role in changing the overall framework of the insurance sector in India and deepening its very impact – for the growing volume of first-time users.