Indian insurtech startup Vitraya has secured $4.1m in a Series A funding round from Xceedance, an AI-based insurance solutions provider. Vitraya will use the proceeds to bolster its AI and blockchain technologies for healthcare insurance.
The Punjab-based firm, founded in 2019, has a platform that facilitates automated, real-time payouts and claims settlements between hospitals and insurers using AI and blockchain tech. It aims to reduce errors, decrease administration expenses, and improve processing time for healthcare providers and insurance claims processors.
Arun Balakrishnan, CEO at Xceedance, said that the company has made multiple investments in innovative insurtech organizations across the globe but this is the first time it has targeted an India-based firm.
He added that he looks forward to being involved as Vitraya expands to serve larger segments of the health insurance market globally, starting with India.
Vitraya CEO Mrinal Sinha called the investment a significant enabler for the company and said that working with Xceedance will help make insurance claims processing efficient and fraud-proof around the world.
According to a report, the insurtech sector is one of the fastest-growing sub-segments of India’s fintech industry and is projected to grow at a CAGR of 57% between 2021-2025.
Vitraya’s competitors in India’s insurtech space include ClaimBuddy, Pazcare, and ClaimTherapist, among others. Other recent developments in the sector include Turtlemint’s B2B arm Turtlefin acquiring SaaS startup Last Decimal, Zopper securing $75m, and BimaKavach securing $2m in funding.
In a related development, stock exchange regulator SEBI asked insurtech unicorn Digit Insurance to refile its DRHP filing for IPO listing owing to compliance issues.
Overall, the investment from Xceedance will help Vitraya strengthen its position in India’s insurtech market and enable the company to expand its services to other parts of the world.
The use of AI and blockchain technologies to automate insurance claims processing is a growing trend in the insurtech industry, and Vitraya’s platform is well-positioned to benefit from this trend.