Gurugram-based insurance platform Toffee has bagged a funding of $1.5 million (around Rs 10 crore) in seed round. The company through a statement said that Venture capital firm Kalaari Capital, impact investors Omidyar Network and Accion Venture Lab led the funding round.
The company is managed by Toffcover Insurance Marketing Pvt Ltd revealed that it will use the fresh funding to develop the product, expand the team to build the tech platform which will have the power of data science, machine learning and artificial intelligence.
Nishant Jain and Rohan Kumar had founded the firm which is a digital-only platform that launched its beta version in December last year. With the help of Toffee's platform, users can go through a number of insurance products ranging in health, lifestyle and personal accidents. Interestingly, the firm claims that buying insurance takes less than 90 seconds and one can claim the insurance in not more than two hours.
Rohan Kumar the CEO of the firm in a statement said that "The funding will strengthen our capabilities to develop better products across new channels in a scalable form. Our goal is to unbundle products and repackage them in a youth-friendly way that focuses on the benefits of insurance to almost make it a commoditized way to sell insurance, rather than as a financial product."
The company has tied up with seven insurance manufacturers who help the customers have the access to real time policy insurance and then claiming of the same.
Vani Kola, Kalaari Capital's managing director talking about their investment said that Insurance is highly under-penetrated in India, and it needs product innovation to reach masses. Toffee is trying to create simple and small ticket size insurance products and distribute them in a very contextual way [and this] has huge potential to drive the mass adoption".
Image Courtesy : Toffee