One of the largest digital insurance broking startup McXtra has raised an amount of $1.3 million in its pre-Series A round from a clutch of 12 largest investors. The fresh funds will be allocated towards scaling up the company’s tech platform and reach out to more users and to expands its growth in the international market as well.
The startup is founded by A S Narayanan and Nimish Airon, McXtra is an insurtech platform that enables users and their families to consolidate all their insurance policies in a secure vault which can be only be opened with the password. It offers insurance services and assistance across major sectors which includes health, motor, life, travel and home insurances.
The app is available on both the Operating system of Android and iOS App Store, the app claims to have partnered with 30 corporate entities and is targeting their 1 lakh user base for their product till now.
The Mumbai-based startup looks to tap data, risk assessment and the ability to offer the right solution by leveraging AI, big data, data analytics to predict consumer behaviour and real-time risk assessment.
Some notable startups in this space includes the PolicyBazaar which is now a Unicorn in this, Coverfox and Acko have been leading the market. While PolicyBazaar has already raised an amount of $236 million from Softbank, Acko and Coverfox have also bagged $12 million from Amazon India and $7 million (from IFC and Transamerica) respectively.
According to a report, there are more than 57 insurance companies out of which 24 are in life insurance business and 33 are non-life insurers. As far as the market size is concerned, the overall insurance industry is expected to reach US$ 280 billion by the end of year 2020.
Insurance brocking startups such as McXtra and others have a huge opportunity to grab a sizeable market share in the growing insurance-tech segment.