Zopper, the insurance infrastructure platform, secures $25 million in funding to expand its services and strengthen digital offerings. In a strategic move to enhance its technology and expand its presence in the insurance space, Zopper, a Noida-based insurtech firm, has raised $25 million in a Series D funding round. The investment was led by Elevation Capital, Dharana Capital, and Blume Ventures. This marks a significant milestone for the 13-year-old company, which had not raised funds for over two years.
The Growing Insurtech Landscape
Zopper’s latest funding round comes after a gap of over two years, following a $75 million Series C funding round in September 2022. The previous round was led by Creaegis, with other key investors like ICICI Venture, Bessemer Venture Partners, and Tiger Global joining in. To date, Zopper has raised more than $115 million, positioning it as a key player in the insurtech space.
But what exactly does Zopper do? Founded in 2010, Zopper began as a Point of Sale (PoS) system for retailers and small-to-medium-sized businesses (SMBs). However, after its acquisition by PhonePe in 2018, Zopper pivoted to become a SaaS (Software as a Service) platform, helping companies distribute insurance products across India.
Why the New Funding is a Game-Changer
The fresh capital will go toward enhancing Zopper’s digital infrastructure, with a strong focus on strengthening its insurance distribution platform. Zopper aims to bolster its services by improving its bancassurance solutions—which refers to the selling of insurance products through banks—and enhancing the post-sales services in its device and appliance protection sectors.
Zopper’s platform has become a crucial tool for businesses that want to offer insurance products to their customers, providing end-to-end technology and services to insurance providers. The company has already partnered with 40 insurance companies and more than 2,500 ecosystem players, which includes financial institutions, retailers, and other businesses.
This round of funding comes at a critical time as Zopper aims to tap into the rapidly growing digital insurance market. The company’s enhanced offerings are expected to streamline the insurance experience for both businesses and consumers.
What Sets Zopper Apart in the Insurtech Space?
Zopper’s journey has been impressive, but it hasn’t always been straightforward. Originally, the company started by serving retailers with its PoS system, which helped small businesses offer micro-insurance solutions. However, after the PhonePe acquisition in 2018, co-founders Surkendu Kulia and Mayank Gupta made a bold decision to pivot their business model.
They transitioned Zopper into a SaaS platform that allowed businesses—particularly consumer internet companies—to distribute a wide range of insurance products. This pivot turned out to be a success, helping Zopper grow and expand its services.
Unlike traditional insurance firms, Zopper’s focus has been on digitizing insurance sales, making the process simpler, quicker, and more accessible. The company’s platform helps insurers reach more customers by embedding insurance options directly into businesses’ existing sales processes, whether it’s for mobile devices, appliances, or broader consumer protection.
Zopper’s Financial Snapshot
While the company did not disclose precise revenue figures, it reported Rs 187.28 crore in revenue with a Rs 13.95 crore loss for FY23. These numbers reflect the company’s ongoing efforts to scale and expand, particularly in a competitive space where digitizing traditional processes is no small feat.
Despite the losses, Zopper’s growth potential is significant, especially with the recent surge in digital transformation across the insurance industry. With the new capital, Zopper is well-positioned to improve its offerings and extend its leadership in the insurtech sector.
The Investors Behind Zopper’s Success
The Series D funding round was led by Elevation Capital, Dharana Capital, and Blume Ventures—all prominent investors in India’s startup ecosystem. These investors are excited about Zopper’s potential to reshape the insurance industry by making digital insurance accessible to a much broader audience.
One of the most notable aspects of Zopper’s funding history is the significant stake held by Tiger Global—which owned around 28.39% of the company as of the Series C round. Other significant investors include Nirvana Digital, which owns 16% of the company, according to TheKredible.
Zopper’s Market Opportunity
India’s insurance market is poised for growth, especially in the digital space. As more consumers turn to online platforms for purchasing products and services, there is a growing demand for seamless insurance solutions that can be integrated into existing business models. Zopper is tapping into this demand by offering a digital-first platform that makes insurance sales faster, more efficient, and more customer-friendly.
The Indian insurance market is expected to grow significantly in the coming years, and Zopper is well-positioned to ride this wave. The fresh funding will enable the company to invest in product development, marketing, and sales to expand its reach across India and beyond.
What’s Next for Zopper?
With the new funding, Zopper plans to expand its services and improve the digital infrastructure needed to support insurance distribution in India. The company also plans to grow its bancassurance solutions, which will help it target a broader market by partnering with more banks and financial institutions.
In the coming months, Zopper’s focus will be on expanding its network of partners and improving its post-sales service offerings, which are crucial for customer retention. The platform’s scalability and flexibility mean that it can easily adapt to meet the growing demands of India’s digital insurance market.
Conclusion
Zopper’s latest $25 million Series D funding round marks a significant milestone in the company’s journey toward becoming a leading player in the insurtech industry. By strengthening its digital infrastructure and expanding its partnerships with insurers and ecosystem players, Zopper is well-positioned to take advantage of India’s booming digital insurance market.
As the company continues to grow, its ability to offer innovative digital solutions will be key to its long-term success. With a proven track record and a strong investor backing, Zopper is set to become a major force in transforming how insurance is sold and managed in India.