Insurance-First BNPL Startup Finsall Secures INR 15 Crore in Bridge Round

Finsall Team (L-R Prabal Khanna Co-founder, COO & Tim Mathews Co-founder, CEO)
  • The round also saw participation from other institutional investors.
  • The funds will be used to set up an NBFC to scale lending operations, develop strategic partnerships, and enhance the “Credit as a Service” platform, delivering more value to stakeholders.
  • Finsall is an “insurance-first” BNPL fintech firm that has successfully pioneered a new lending category.
  • The company has grown 9X over the past two years and is currently serving customers across 8,000 locations in India.
  • Finsall is on track to achieve 4X revenue growth in the current fiscal year.

Bangalore, 12th June 2024 – Finsall, a leading Insurance-First Buy Now, Pay Later (BNPL) startup, has successfully raised INR 15 crore in a bridge round led by Unicorn India Ventures and Seafund, with additional backing from other institutional investors.

The freshly raised funds will be utilized to establish a Non-Banking Financial Company (NBFC) to expand lending operations, thereby delivering greater value to customers in the insurance premium financing sector. The investment will also be directed towards enhancing technology to develop intuitive, user-friendly interfaces, providing seamless digital experiences for key stakeholders, including insurance companies, brokers, agents, and lending partners such as Banks and NBFCs. Furthermore, the capital will support the development of strategic partnerships with insurers, intermediaries, and lenders to broaden service offerings and enhance distribution channels.

Tim Mathews, Co-Founder and CEO of Finsall, remarked, “This interim bridge round will enable us to scale our operations and establish an NBFC within the insurance premium financing industry. Building a new category, particularly in the lending and insurance space, is challenging. We are fortunate to have a dedicated core team and long-term investors like Unicorn India Ventures and Seafund who believe in our vision. We aim to offer financial inclusion and lending solutions that will protect individuals, their assets, and their loved ones. Our goal is to build on our domestic success and explore the global potential of our products.”

Finsall aims to achieve accelerated business growth while remaining innovative, competitive, and customer-centric. By focusing on product development, operational scaling, and customer service, the company is well-positioned to disrupt the insurance premium financing industry and establish a long-term value proposition in the market.

Anil Joshi, Managing Partner of Unicorn India Ventures, commented, “Insurance premium financing is a nascent sector, but customer acceptance has grown significantly, especially post-COVID. Insurance providers and end-users are now comfortable using credit for financing insurance premiums. With insurance penetration in India still at 1%, the market opportunity is vast, and we believe Finsall is well-positioned to capitalize on this segment.”

Finsall has witnessed a 9X revenue growth over the past two years, driven by strategic partnerships, a growing customer base, and expanding demographics. The company currently serves customers across 8,000 locations in India, with substantial growth in the non-life insurance segments and multiple insurers onboarded.

Manoj Agarwal, Managing Partner of Seafund, said, “Having invested in Finsall from its early days, we have observed the team’s strong focus on improving customer retention rates, loan size and tenures, and financial asset quality, leading to healthy growth. As Finsall continues to onboard more insurance providers and agents, we anticipate rapid market growth for them.”

Finsall is dedicated to ensuring every citizen is adequately insured by making insurance premium financing affordable and accessible. Serving a diverse customer base, from high-net-worth individuals (HNIs) to gig economy workers and enterprises, Finsall offers lending solutions through its Credit as a Service (CaaS) platform. This plug-and-play model allows customers to select the insurance products they need to offer credit without the complexity of developing separate credit or lending systems. With these advancements, Finsall is on track to achieve a 4X increase in revenue for the fiscal year 2024-25.

In FY 2023-24, Finsall achieved an average month-on-month growth rate of 18% in insurance premiums. The company’s Integrated Credit Model platform revolutionizes customer onboarding by seamlessly connecting insurers and intermediaries with relevant lenders.