Healthcare Insurtech Startup FlashAid Bags $2.5 Mn in Pre-Series A Funding Round

By creating a channel for retail health plan distribution via a B2B2C platform, FlashAid seeks to democratize access to health insurance and promote health equity in India.

Mumbai-based FlashAid, an insurtech startup focused on healthcare has announced the successful closure of a $2.5 million pre-Series A funding round, co-led by Piper Serica Angel Fund and SOSV.

Early-stage investors Z21 Ventures Fund and ZNLGrowth Fund also participated in this funding round.

FlashAid, founded by Manoj Gupta and Gunjali Kothari, offers an API-first full-stack health solution with proprietary pre-underwritten products, open APIs, and embedded solutions.

The startup aims to address the challenges of affordability and accessibility in the health insurance sector by leveraging technology and strategic partnerships.

The infusion of fresh capital will fuel FlashAid's growth ambitions, including plans to expand its presence to six new cities.

The startup intends to utilize the funds to further develop its technology infrastructure, enhance product offerings, and strengthen its market position.

FlashAid’s Offerings

One of FlashAid's key strategies involves developing exclusive partnerships with insurance companies to tailor-make products and collaborating with ecommerce platforms and brands to distribute insurance to their users.

By creating a channel for retail health plan distribution via a B2B2C platform, FlashAid seeks to democratize access to health insurance and promote health equity in India.

Gunjali Kothari, cofounder of FlashAid, underscored the importance of embracing digital evolution in the healthcare ecosystem.

She stated, "With an expected 30% surge in digital platform adoption by 2030, a significant opportunity emerges to align the ecosystem towards providing scalable solutions that promote health equity in India."

Kothari further elaborated on FlashAid's API-centric strategy, which aims to make the healthcare ecosystem more accessible and user-friendly. This approach resonates with the shifting behaviors of customers in purchasing and accessing healthcare services, ultimately benefiting the wider population.

FlashAid has already partnered with over 20 platforms to distribute more than 30,000 health covers over the last year.

Currently boasting a $1 million annual recurring revenue (ARR), the startup anticipates robust growth, aiming to reach $10 million ARR within the next two years.

Rise of Healthcare focused insurtech startups in India

Globally the insurtech market size is forecast to increase by $77.41 billion, growing at a CAGR of 42.35% between 2023 and 2028.

The announcement once again puts a spotlight on burgeoning insurtech landscape in India. In October last year, insurtech startup Onsurity raised $24 million in the Series B funding round led by the International Finance Corporation.

Apart from insurtech unicorns like PolicyBazar and Acko, India’s healthcare focused insurtech industry has seen some new entrants with differentiated product offerings from the incumbent giants.

For example, Toffee Insurance is a digital-first insurtech startup that offers insurance solutions tailored for millennials. The company has raised $7.1 million in funding from 2017 to 2019.

Kenko Health is a healthcare focused insurtech startup founded in 2019. It offers subscription-based services covering medical costs for OPD and hospitalization.

Turtlemint is an insurtech platform that provides solutions for insurance agents, including training and licensing.

Digit is a Unicorn insurtech startup in India that offers innovative insurance products such as "Pay as you drive" plans. Recently, its IPO request was approved by SEBI.