For more than half a decade, Zopper has been building a platform for small- and medium-sized businesses, helping merchants with invoicing and payments through its point-of-sale platform. In mid-2018, it sold that IP to PhonePe, but instead of joining the fintech giant, Zopper has been working on a new venture from scratch and independent of PhonePe. This business, an API platform for insurance infrastructure, announced on Tuesday that it has raised $75 million in new funding.
The Funding Round
The New Delhi–headquartered startup’s Series C funding was led by Creaegis. ICICI Venture and Bessemer Venture Partners, as well as existing backer Blume Ventures, also participated in the funding. Zopper, an 11-year-old startup, has raised $96 million to date. The valuation at which it closed the round remains undisclosed.
The Insurance Infrastructure Platform
Zopper works with insurance providers and creates byte-sized, personalized products that it then supplies to distribution partners. This approach differentiates Zopper from many of its competitors in India that are aggregating coverages from different manufacturers and attempting to cut the distributors and directly reach consumers.
"If you look at the penetration of insurance in India today, it’s just 3 to 4%," said Surjendu Kuila, founder and chief executive of Zopper. "If you’re trying to bring new people to the fold of insurance, you just cannot sell them schemes that are priced above $37 to $50 a year."
Offering customers slivers of insurance coverages in smaller sachets hasn’t proven successful because there’s no margin for anyone to make money, he said. Zopper is attempting to solve this by partnering with banks, nonbanking financial institutions, retail chains, mobility firms that already have a captive customer base.
"These partners need an insurance platform, and that’s what we provide," he said. Kuila claimed that no other firm has been able to replicate Zopper’s success in the Indian market.
The Future of Insurance Distribution
Zopper’s API platform enables insurers to seamlessly integrate their products into existing distribution channels. This approach not only increases customer adoption but also provides a competitive edge for insurance providers.
"The future of insurance distribution lies in technology," said Kuila. "With our API platform, we are revolutionizing the way insurance is distributed and consumed in India."
What’s Next for Zopper
With this latest funding round, Zopper plans to expand its reach across India and explore new markets. The company aims to become a leading player in the Indian insurance sector.
"The next phase of growth for Zopper will be focused on expanding our distribution network and increasing customer adoption," said Kuila. "We are committed to making insurance more accessible and affordable for millions of Indians."
About Zopper
Zopper is an API platform that enables insurers to seamlessly integrate their products into existing distribution channels. Founded in 2012, the company has raised $96 million to date and is headquartered in New Delhi.
Related Stories