Pazcare, a Bangalore-based employee benefits and insurtech platform, announced today it has raised $8.2 million led by Jafco Asia, bringing its valuation to $48 million. The funding also included participation from returning investors 3One4 Capital and BEENEXT.
Pazcare currently offers health, term, accident insurance and outpatient health benefits. It monetizes from service providers through commissions.
The startup says it currently serves more than 130,000 members from over 500 companies on its platform and has seen quarter-on-quarter growth of 100%. Its enterprise clients include Mindtickle, Mamaearth, Levi’s, Cash Karo and Open Financial.
Pazcare’s last round of funding was a $3.5 million seed round raised in October 2021. It has now raised a total of about $12 million since its founding in 2021 by Sanchit Malik and Manish Mishra. It aims to bring 2,000 more companies onto its platform over the next few quarters.
Malik told TechCrunch that the new funding will be used to expand Pazcare’s offerings and double its team size. He and Mishra wanted to create Pazcare because “health and life insurance penetration in India has been very low,” Malik told TechCrunch. “In India, we are on our own, either we buy insurance by ourselves or we are dependent on our employers to provide these benefits. We believe that insurance penetration will be primarily employer-driven and this became a big trigger for us to get into it.”
In a statement, Jafco Asia head of South Asia investments Supriya Singh said, “B2B insurance is a large white space in Asia. Pazcare is well equipped to disrupt this space and the company’s numbers speak for itself.”