Insurtech startup Finhaat has successfully raised $3 million in its seed funding round, with leading contributions from venture capital firms Omnivore and Kettleborough VC. Since its inception in 2022, Finhaat has been dedicated to providing digital insurance services to underserved demographics, focusing on rural communities and middle to low-income populations in tier 2 and 3 cities.
Strategic Expansion Plans Unveiled
Vinod Singh, Co-founder of Finhaat, revealed that the company plans to utilize the new funding to expand its operations significantly. The strategic focus includes the development of technological models, enhancement of product experiences, introduction of new insurance products, expansion of the partner base, and talent acquisition for new verticals within the company.
Bridging the Financial Inclusion Gap
With a mission to transform financial services for the underserved, Finhaat operates a B2B insurance distribution and servicing platform. The platform caters to institutions working with underserved populations, such as NBFCs, MFIs, BC networks, Nidhi companies, cooperatives, NGOs, and FPOs. Jinesh Shah, Managing Partner at Omnivore, emphasized the pressing need for financial inclusion in rural India, where a mere 11.5% of households have net savings, and less than 10% have life insurance.
Addressing Rural Vulnerability
Finhaat aims to address the financial vulnerability prevalent in low-income segments, particularly among farmers facing various risks. The startup’s tailored insurance products aim to mitigate uncertainties, boost financial stability, and promote growth in these underserved communities.
Positive Financial Inclusion Trends
While the Reserve Bank of India’s financial inclusion index saw improvement to 60.1% in 2022-23, indicating deepening financial inclusion in India, Finhaat’s initiatives align with broader national efforts. The Jan Dhan, Aadhaar, and Mobile (JAM) trinity, as highlighted in a G20 Global Partnership for Financial Inclusion report, played a crucial role in propelling India’s financial inclusion rate from 25% in 2008 to over 80% of adults in the past six years.
