Insurtech startup Vitraya has raised $4.1 million in a Series A funding round from AI-based insurance solutions provider Xceedance. The Punjab-based firm plans to use the funds to enhance its AI and blockchain technologies for healthcare insurance. Vitraya’s tech platform leverages AI and blockchain to automate payment integrity, medical coding, and administration for insurers. The company aims to make insurance claims documentation easier, reduce administration expenses, and decrease errors and processing time for healthcare providers and insurance claims processors. The insurtech sector is one of the fastest-growing sub-segments of India’s fintech industry, expected to grow at a CAGR of 57% during 2021-25.
The insurtech sector in India is growing rapidly and is expected to continue to do so with a CAGR of 57% between 2021-25. This growth is evident from recent developments in the industry, such as Turtlemint’s B2B arm Turtlefin acquiring SaaS startup Last Decimal, Zopper securing $75 Mn, and BimaKavach securing $2 Mn in funding.
However, the industry also faces challenges related to compliance, as seen in the case of insurtech unicorn Digit Insurance. The stock exchange regulator SEBI asked Digit Insurance to refile its DRHP filing for IPO listing due to compliance issues. Despite such challenges, the insurtech sector is expected to continue its growth trajectory in India.