BENGALURU: Insurtech start-up Zopper aims to end this fiscal year with Rs 500 crore revenue, which is coming on back of a strong 55%-60% growth in its premiums across key lines of business.
Mayank Gupta, co-founder and COO, Zopper, told this newspaper that as macroeconomic factors such as inflation and income growth shape consumer behaviour, the demand for cost-effective and user-friendly insurance solutions is rising, especially in rural areas.
"We see a growing demand from tier-2 and 3 regions, and that's where the big opportunity lies. Insurtechs can play a significant role in the under-penetrated markets and make insurance available to the populace with the help of their tech prowess," he said.
Zopper combines insurance and technology to deliver solutions to its partners, and it has a presence across 1,200 cities.
The firm has raised USD 125 million so far, and in its latest funding round, it raised USD 25 million in Series D, co-led by Elevation Capital and Dharana Capital.
"The new funds will be utilised to enhance our digital infrastructure, focusing on strengthening the insurance distribution platform. This investment will also support the growth of our bancassurance solutions and improve post-sales and service operations for device and appliance protection segments," he said.
There has been a 7.7% growth in the country's overall insurance market, reaching Rs 11.2 lakh crore in FY24, according to the Economic Survey 2025.
However, insurance penetration decreased from 4% to 3.7%.
"India is far behind the global average of 7% compared to overall penetration. Hence, there is an impending need for the industry to focus on ways and means to expand the scope of distribution of insurance in the country," Gupta said.
India has more than 150 insurtech companies, generating revenue over USD 750 million, according to Boston Consulting Group.
The insurtech firm is also deepening its focus on collaborating with banks, NBFCs, travel portals, consumer durable brands, and retail chains.
The co-founder also stated that there is a need to move beyond traditional distribution methods by allowing digital platforms, mobile apps, and telecommunication networks to reach potential customers by partnering with insurtechs. "This not only enhances accessibility for customers but also reduces operational costs for insurers, making the products more affordable," he said.
According to him, integrating insurance offerings or embedding insurance with other financial products is a vital aspect as it can enhance the customer experience.