Insurepays, which rewards consumers by facilitating discounts at vendors against premiums paid for insurance policies, is hoping to raise $5-7 million in a Series A round of funding. The company has so far raised about $1 million from angel investors, according to co-founder KK Jain.
Insurepays currently has 1.6 lakh customers and is looking to increase this to 30 lakh over the next 12-18 months. By that time, it expects its members to have paid Rs 300 crore worth of premiums, Jain said. So far, members, who have been coming on board since November 2020, have paid Rs 140 crore worth of premiums and have redeemed almost Rs 6.3 crore worth through discounts at various vendors.
Jain believes the business can become Ebitda-positive by FY24 and report a net profit of about Rs 160 crore on revenues of approximately Rs 700 crore. Currently, the fixed costs amount to about Rs 3 crore annually. In addition, there are marketing expenses being incurred. The company’s customer acquisition cost, which includes marketing and promotional expenses and technology support, works out to Rs 480-500 per customer. The company creates awareness about its products via digital marketing campaigns on Facebook, Google and other platforms.
Insurepays, which started operations in 2020, does not distribute insurance policies; its objective is to incentivise those who pay their premiums – for life, health or motor policies – regularly. The company claims it has around 27,000 partnerships with vendors where customers can get a discount on their purchases.
An individual who routes a premium payment through InsurePays – collections are processed and deposited with the insurer by NPCI and BBPS – wins points for an equivalent amount. These points can be redeemed at any of the vendors that have partnered with InsurePays over a period of 12 months.
In turn, vendors compensate InsurePays to the extent of 0.25-2% of the value of the transaction. The company also rewards customers whose bill payments are routed via its app.