MetaMorphoSys will be using the funds for product development, business expansion
It plans to expand its footprint in Hong Kong, Singapore, Indonesia and other countries
The Indian digital insurance platform market is expected to reach $165.02 Bn by 2024
MetaMorphoSys, on Monday (May 4), announced that it has raised an undisclosed amount of funding from California-based early-stage VC fund Good Capital in a pre-series A round. Rahul Khanna, cofounder and managing partner of venture debt fund, Trifecta Capital also participated.
Pune-based insurtech startup will be using the funds primarily for product development in India. It also plans to grow its footprint in other South Asian countries including Hong Kong, Singapore, Indonesia, Vietnam, Philippines and Thailand.
Founded in 2016, MetaMorphoSys is a SaaS-based on-demand digital insurance platform that addresses the business and technology challenges of the global insurance industry.
“Insurance companies have realised that startups like MetaMorphoSys can help them compete with new-age insurance companies and at the same time leverage the huge investments already made in existing legacy platforms,” said Rohan Malhotra, managing partner at Good Capital.
MetaMorphoSys: An Overview
MetaMorphoSys was ideated by Amit Naik and Kewal Vargante, who are both veterans in the insurance space and have previously worked in digital insurance software solutions and services companies such as Majesco (formerly known as Mastek) and C2LBIZ.
The team consists of domain experts, architects and business analysts, who provide insights on the current business trends and nuances. Naik said that their product team constantly innovates and translates business requirements into revolutionary products.
“The company is solving a unique problem prevailing in the insurance industry. Its product stack allows legacy insurance businesses to plug into critical products that take time, effort and capital to build,” believes Khanna.
It provides services to some of the leading insurance companies in Southeast Asia regions, who are leveraging their technology to launch innovative products and empower their sales force.
In addition to this, the platform supports motor, travel, personal accident, property/home, life, health, low ticket and episodic insurance products.
“We offer an end-to-end platform which takes care of the entire value-chain from customer acquisition to engagement and provides a suite of products, including product configurator, underwriting, claims, recommendation and AI/ML sales analytics engine among others,” explained Naik.
Insurtech Funding Ecosystem In India
According to DataLabs, between 2015 and Q1 2019, the total investment in Indian fintech startups was $7.62 Bn with a total deal count of 478. Out of this, the insurance tech contributed 8.03% ($612 Mn), lending tech 25.49% ($1.94 Bn), payments 50.13% ($3.82), so and so forth.
Last year, Gurugram-based insurtech startup Toffee Insurance raised $5.5 Mn in a Series A funding round led by IVM Intersurer, Omidyar Network, Flourish Ventures, Accion Venture Lab and Kalaari Capital. Bengaluru-based insurtech startup Digit Insurance had said that it is in talks to raise $80 Mn to $100 Mn from TVS Capital Funds, A91 Partners and Faering Capital.
Other key players in the segment, who have raised a significant amount of capital are PolicyBazaar, Toffee Insurance, CoverFox, RenewBuy, and Acko among others.
Covid-19: Challenges And Opportunities In Insurtech Space
As global markets progress beyond the challenges presented by Covid-19, it becomes crucial for insurance companies to innovate, digitise and leverage technology to work with new and existing partners to underwrite claims, develop customised products, etc, that suit the present-day market requirement much faster and in a seamless manner.
In India, digital insurance has witnessed a penetration of less than 4%. However, in the last few years, the penetration has been growing rapidly at about 90% amid high customer acquisition costs and heavy regulations. With Covid-19, the market is set to explode, as the customers and businesses are reeling into online channels and looking for customised products that suit their future needs.
According to TechSciResearch, the Indian digital insurance platform market is expected to reach $165.02 Bn by 2024, growing at a compound annual growth rate of over 13%. The growth is said to be fuelled by adapting to emerging technologies such as AI, IoT and data analytics.