Getty ImagesMumbai: Onsurity, an employee health benefits platform, has raised $16 million in a Series A funding round led by Quona Capital and existing investors Nexus Venture Partners and Whiteboard Capital. Entrepreneur Vivek Garipalli, the founder and chief executive officer of Clover Healthcare, also participated in the fundraising.
The company will use the funds to build its healthcare platform and offerings.
Founded last year by Agarwal and Kulin Shah, Onsurity provides a self-serve platform where organisations can purchase flexible and customised health benefit subscriptions for their employees. It makes employee health benefits and insurance affordable and accessible to small and medium businesses and startups across India. Onsurity’s clients include food and beverage outlets, retailers and wholesalers, small consulting firms, trading companies, small service centres, boutique marketing agencies and similar businesses, many of whom now receive access to employee health benefits for the first time.
The company is currently working with 1,300 small and medium-sized businesses and aims to reach 10,000 such companies over the next 12 months, covering 500,000 lives.
“Technology has enabled healthcare to speed up diagnosis and improve patient care but has largely neglected the issues of tedious and cumbersome benefits access and onboarding,” Agarwal said.
Indian SMBs typically have 300-400 employees and traditionally had no access to affordable health plans. There are 35 million SMBs and startups in the country that collectively employ more than 150 million people.
“Our experience has taught us that small businesses and startups struggle to find the right employee healthcare plan, and that the process is time-consuming and expensive,” Shah said. “More often than not, health benefit plans deliver a poor customers’ experience when hospitalisation and claims are made.”
Healthtech and insurtech are two emerging sectors that have seen heightened capital inflow from risk investors. According to Onsurity’s estimates, the untapped healthcare market of the workforce in SMBs and the unorganised market is currently pegged at about Rs 1 lakh crore.
“Though there are several intermediaries offering health insurance and benefits in India, affordable access to healthcare benefits—which is a critical part of financial resilience—eludes most of the small businesses and the working people,” said Ganesh Rengaswamy, managing partner and cofounder of Quona Capital.
The company will use the funds to build its healthcare platform and offerings.
“We are looking at an exit average revenue run rate of $20 million in the next 24 months,” Yogesh Agarwal, co-founder and chief executive at Onsurity, told ET.
Founded last year by Agarwal and Kulin Shah, Onsurity provides a self-serve platform where organisations can purchase flexible and customised health benefit subscriptions for their employees. It makes employee health benefits and insurance affordable and accessible to small and medium businesses and startups across India. Onsurity’s clients include food and beverage outlets, retailers and wholesalers, small consulting firms, trading companies, small service centres, boutique marketing agencies and similar businesses, many of whom now receive access to employee health benefits for the first time.
The company is currently working with 1,300 small and medium-sized businesses and aims to reach 10,000 such companies over the next 12 months, covering 500,000 lives.
“Technology has enabled healthcare to speed up diagnosis and improve patient care but has largely neglected the issues of tedious and cumbersome benefits access and onboarding,” Agarwal said.
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Indian SMBs typically have 300-400 employees and traditionally had no access to affordable health plans. There are 35 million SMBs and startups in the country that collectively employ more than 150 million people.
“Our experience has taught us that small businesses and startups struggle to find the right employee healthcare plan, and that the process is time-consuming and expensive,” Shah said. “More often than not, health benefit plans deliver a poor customers’ experience when hospitalisation and claims are made.”
Healthtech and insurtech are two emerging sectors that have seen heightened capital inflow from risk investors. According to Onsurity’s estimates, the untapped healthcare market of the workforce in SMBs and the unorganised market is currently pegged at about Rs 1 lakh crore.
“Though there are several intermediaries offering health insurance and benefits in India, affordable access to healthcare benefits—which is a critical part of financial resilience—eludes most of the small businesses and the working people,” said Ganesh Rengaswamy, managing partner and cofounder of Quona Capital.
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