Jaipur-based insure-tech pioneer, Square Insurance, is excited to announce a significant milestone in its growth journey with the successful acquisition of $3 million [ INR 25 Crores ] in funding. This funding round was led by BizDateUp and Negen Capital and included prominent investors such as Prashant Kothari, owner of Jaipur Color Stone, and Yogesh Chaudhary, owner of Jaipur Rugs. The deal was consulted by Cognihub Consultant, led by Rishi Agarwal.
The infusion of capital will be pivotal in enhancing Square Insurance’s technology infrastructure, focusing on improving its AI-driven insure-tech platform to streamline operations and enhance the customer experience. This initiative aligns with the Indian government’s vision of “Insurance for All by 2047,” aiming to ensure broader access to nationwide insurance services.
A significant portion of the funding will be allocated to developing technology for cattle insurance, addressing the critical needs of farmers in rural areas. Additionally, Square Insurance plans to invest in creating customized micro-insurance products in collaboration with leading insurers and forming strategic partnerships with fintech and e-commerce companies. These efforts will expand their reach and impact, transforming insurance accessibility in underserved markets.
Rakesh Kumar, Founder and Managing Director of Square Insurance, commented, “This funding is a testament to our vision of revolutionizing insurance through technology and accessibility. It will enable us to enhance our offerings and extend our reach into new markets, particularly in rural areas where insurance protection is crucial. We are committed to leveraging this investment to drive innovation and deliver meaningful solutions to our customers.”
Speaking about the fund raised, Meet Jain, co-founder at Bizdateup said, “India’s insurance industry is a dynamic sector experiencing substantial growth, even facing global challenges like the COVID-19 pandemic, the climate crisis, and the Russia-Ukraine conflict. Currently, the industry is growing at an impressive rate of 32-34% annually. Moreover, the sector has attracted nearly Rs. 54,000 crore (US$ 6.5 billion) in foreign direct investment, driven by the government’s progressive relaxation of overseas capital regulations.” He further added, “We see tremendous potential in Square Insurance to transform the insurance landscape in India. Their commitment to using technology to make insurance more accessible aligns perfectly with our vision of supporting innovative startups that make a real-world impact. We’re thrilled to be part of this journey and look forward to seeing Square Insurance reach new heights.”
Neil Bahal of Negen Capital expressed enthusiasm about the investment: “India’s GDP is on the cusp of a multi-year growth trajectory, and insurance is a key, unsaturated area with significant headroom for growth. With Square Insurance, we had a rare, bootstrapped, and profitable InsureTech company that intrigued us. The founders’ rich experience and commitment to profitable growth resonated with us. We are proud to partner with Square Insurance and support them in their growth journey.”
This funding will propel Square Insurance towards its goals of innovation and expansion, reinforcing its trailblazing position in the Indian insurance industry. In the coming year, the company plans to open 25-30 new offices in tier 2 and tier 3 cities, enhancing its ability to serve a larger customer base. This expansion will improve insurance product comparisons and post-policy services for both channel partners and customers, further advancing Square Insurance’s mission of broadening insurance access across India.