Onsurity, an Indian startup that provides monthly subscription-based insurance solutions tailored for micro, small, and medium enterprises (MSMEs), as well as startups and growing businesses, has successfully raised $24 million in a Series B funding round. This funding was led by the International Finance Corporation (IFC), a branch of the World Bank, with participation from existing investors Nexus Venture Partners and Quona Capital. With this latest funding round, Onsurity has secured a total of $40 million in investments.
India is home to more than 63 million MSMEs, employing nearly 400 million individuals and supporting 675 million families. However, traditional insurance providers in the country have predominantly focused on motor, retail health, and large corporate insurance programs, leaving a gap in coverage for enterprises. The low overall insurance penetration in India, which stood at 4.2% in 2021 according to the government’s Economic Survey, has contributed to established insurance companies hesitating to serve enterprise customers.
Onsurity aims to address this gap by offering a suite of insurance offerings specifically designed for MSMEs and emerging businesses. In addition to insurance coverage, Onsurity integrates healthcare and wellness benefits, allowing companies of all sizes to offer their employees access to health checkups, fitness memberships, doctor consultations, discounted medications, and more.
Recently, the startup expanded its product line to include cyber risk insurance, providing businesses with dedicated coverage against privacy and security breaches. Onsurity also offers other business-related insurance products, including D&O liability insurance and commercial general insurance under the Onsurity Plus brand.
Yogesh Agarwal, the founder and CEO of Onsurity, emphasized that the company is not competing with large insurance players or distributors in India but is creating a distinct category tailored to the needs of MSMEs and emerging businesses. Agarwal and Kulin Shah, the COO of Onsurity, both have extensive experience in the insurance sector, having worked in various insurance companies before co-founding the startup in February 2020.
Onsurity collaborates with approximately five insurance partners and four to five companies in the healthcare and wellness services sector. The startup has also partnered with over 100 hospitals directly to facilitate the processing of customer claims and enhance its healthcare integration.
As of now, Onsurity serves more than 5,000 enterprise customers, reaching over a million individuals across 26 Indian states and three union territories. Its member base includes business executives, startup employees, gig workers, and their dependents. About 80% of Onsurity’s portfolio comprises SMEs, with over half of its member base consisting of blue-collar workers and nearly 40% coming from tier-II and tier-III cities.
With the fresh funding, Onsurity plans to expand its customer base to over 50,000 companies, providing coverage to more than 5 million individuals by 2026. The startup also intends to invest in technology to enhance its competitive edge and streamline member settlements. Additionally, it is exploring the development of an AI engine to identify the most suitable insurance products for specific SME customers based on their risk profiles. Onsurity aims to increase its outreach and expand its customer base in the future.
The availability of insurance coverage plays a crucial role in economic risk management and social security. Onsurity’s mission aligns with this goal, and its recent funding underscores its commitment to providing accessible employer-sponsored health insurance services, as noted by Wendy Werner, IFC country head, India.
Onsurity currently employs a team of 300 individuals, with 20% of its workforce located in cities outside of Bengaluru. The startup intends to continue hiring and expanding its presence in the future.