Sequoia-backed Indian insurtech startup raises $30m in a round led by GGV Capital

Turtlemint, an India-based insurtech platform, raised US$30 million in a new financing round led by GGV Capital. Other investors include American Family Ventures, MassMutual Ventures, and SIG.

Turtlemint staff / Photo credit: Turtlemint

Existing investors Sequoia Capital India, Blume Ventures, Nexus Venture Partners, Dream Incubator, and Trifecta Capital also participated in the round.

The funds raised will be used to improve Turtlemint’s technology solutions, scale its penetration of Tier 2 and Tier 3 cities, and upskill its advisors and customers through training and content.

As per a report by India’s insurance regulatory body, insurance penetration in India is among the lowest in the world at 3.69%.

Launched in 2015, Turtlemint has partnered with over 40 insurers along with 100,000 point-of-sales persons to help consumers identify and purchase the most appropriate insurance policies for them.

“Due to the recent Covid-19 pandemic, consumer awareness and demand for health and term-life insurance has shot up,” said the company’s co-founder Dhirendra Mahyavanshi. He also claims that the platform has boosted the business for online advisors by 2.5x, citing an internal study.

Data from India Brand Equity Foundation shows that the country’s insurance industry is expected to grow to US$280 billion by 2020, bolstered by the higher personal disposable incomes in the country.

In addition, market research firm Mordor Intelligence states that the online insurance market in India is expected to reach a value of about 220 billion rupees (US$2.95 billion) by 2024.

Several players are now disrupting the growing online insurance market in the country, including the likes of Amazon and Paytm. Amazon has tied up with general insurance startup Acko to sell motor vehicle policies on its Pay platform, while Paytm has acquired the Mumbai-based Raheja QBE to enter the general insurance sector.

See also: Indian insurtech firm Digit to raise $84m in equity funding

Turtlemint has raised a total of US$55 million from three previous rounds of funding. It had raised US$6 million in November 2018, followed by the US$25 million it received in January 2019 after two rounds of funding led by Sequoia Capital India, according to Crunchbase. In February 2016, it raised an undisclosed round of seed funding from Nexus Venture Partners.

Currency converted from Indian rupee to US dollar: US$1 = INR74.48.