Toffee Insurance, India’s first digital-only insurance platform for millennials has raised $1.5 million (Rs 10 crores approximately) in a round of seed funding led by Kalaari Capital, Omidyar Network and Accion Venture Lab. Toffee plans to use the funds to focus on product development and expanding its team.
Founded by Nishant Jain and Rohan Kumar, Toffee is a technology platform focused on providing contextual and relevant insurance offerings to a growing youth demographic. With Toffee, buying insurance takes less than 90 seconds and simple claims are processed in under two hours via a completely digital interface. Toffee’s initial lineup of products spans across health, lifestyle and personal accidents with a core focus on simplicity and includes products such as StayFit Toffee, Anti-Dengue Toffee, Globetrotter Toffee, Renter Toffee, Commuter Toffee, Backpacker Toffee, etc.
The funding is received from marquee institutional investors, who have a diverse portfolio across healthcare, financial inclusion, insurtech. The funding will help accelerate product development and creating efficiencies in channel approach. The company also intends to build a strong insurtech team with capabilities across data science, machine learning and AI.
With the support of angel investors Vivek Gujral and Harshal Shah, Toffee launched their beta platform in December 2017. Currently, the platform is integrated with seven insurance manufacturers to facilitate real time policy issuance and claims processing.
Regarding the latest round of funding, Rohan Kumar, CEO and cofounder, Toffee Insurance said, “We are really excited about the support we have received from Kalaari Capital, Omidyar Network and Accion Venture Lab. Their belief in our vision 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.”
Vani Kola, managing director, Kalaari Capital, highlighting the reason behind choosing to invest in Toffee Insurance, said, “Insurance is highly under-penetrated in India, and it needs product innovation to reach masses. The mission Rohan and Nishant are onto to create simple and small ticket size insurance products and distribute them in a very contextual way has huge potential to drive the mass adoption. We are very excited to be part of the Toffee Insurance journey.”
Toffee is conceptualized to be insurance for the new-age: simple, affordable and built to fit a millennial’s lifestyle. Insurance has been very complicated and expensive for too long, according to the team behind Toffee, co-founders Rohan Kumar and Nishant Jain. What makes Toffee different is its ability to analyse, predict and customize product offerings, sometimes referred to as ‘bite-sized insurance’ that reduces risk and expense for this young demographic.