Onsurity
Onsurity sells subscription health benefits and insurance access to Indian SMEs.
On the record
Checkpoint: Next funding round terms (up/flat/down) and IRDAI underwriting license decision
The call
Onsurity grows revenue fast but loses more per rupee than it earns, stuck as one of five interchangeable players waiting on a regulator that has gone cold on VC-backed insurers.
Onsurity sells corporate health insurance plans to Indian companies using a licensed platform, and it grew its sales 66% last year to about $15 million. However, it loses money on nearly every sale, and five other companies (Plum, Pazcare, Nova, Loop, ekincare) do the exact same thing with the same government license, so there is nothing special that stops customers from switching to a cheaper or better competitor. Onsurity was trying to get approval to underwrite its own insurance (make its own rules and keep more profit), but that request has been stuck for over 18 months and the Indian regulator is now saying no to venture-backed companies like Onsurity, which means it may be locked into this low-profit model forever, unless it can either beat Plum at its own game or raise money at a much lower price than it did in 2024.
Why
01
AI pressure: Insurity Andromeda/Borealis and similar claims-automation AI vendors. AI-driven claims and support tools could let insurers or rivals cut costs Onsurity can't match on thin margins. Could AI do the core job? Only partly.
02
Bigger players: Plum, plus ICICI Lombard, Go Digit, Niva Bupa. Plum is cited as category leader among five near-identical IRDAI-licensed platforms; insurers themselves move slowly but hold underwriting power Onsurity lacks. Could a giant copy it? Probably.
03
What protects it. An IRDAI distribution license and existing SME relationships, but nothing stops a rival from copying the model exactly.
What would change this call
Onsurity's next funding round terms (up, flat, or down) versus the ~$124-128M Sep 2024 baseline. Would show whether investors still back its distribution-only model.
IRDAI decision granting or rejecting Onsurity an underwriting license. Would show whether it can escape thin-margin distribution or stay locked in.
Customer count reported in filings or press moving past 8,000 toward the 50,000 target. Would show whether it is actually growing or stalled versus Plum and peers.
IRDAI decision granting or rejecting Onsurity an underwriting license. Would show whether it can escape thin-margin distribution or stay locked in.
Customer count reported in filings or press moving past 8,000 toward the 50,000 target. Would show whether it is actually growing or stalled versus Plum and peers.
Key numbers
- ₹125 crore FY24 revenue, up 66% YoY
- -63% net margin, ₹79.1 crore loss
- 8,000+ customers, unchanged since Sep 2024
Named risks
- IRDAI has hardened its stance against granting underwriting licenses to VC-backed insurtechs since Sept 2025.
- FY24 net margin of -63.3% with continued burn risks a down-round or forced dilutive raise.
- Five near-identical competitors (Plum, Pazcare, Nova, Loop, ekincare) share the same license with no shipped differentiator.
- Growth stalled: client count flat near 8,000+ since Sept 2024, headcount growth only +0.7% in Q1 2026.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Plum (Plum Benefits) | contesting | Repeatedly named category leader across CB Insights competitor profiles, undated |
| Pazcare | contesting | Claims 2,000+ clients as of 2026-01-13, near-identical model to Onsurity's 8,000+ |
| Loop Health | contesting | Also stuck without IRDAI underwriting license as of 2025-09-02, same regulatory trap |
| ICICI Lombard, Go Digit, Niva Bupa | gaining on | Slow to court SMEs directly but hold underwriting role Onsurity cannot get, as of 2025-09 |
| Insurity (AI infrastructure vendor) | gaining on | Shipped Andromeda (Nov 2025) and Borealis (Feb 2026) AI tools automating claims industry-wide |
Questions people ask
- Is Onsurity profitable in 2024?
- No. Onsurity posted a FY24 net loss of about 79.1 crore rupees on revenue of 125.0 crore rupees, a net margin near -63.3%, despite revenue growing 66% year over year from FY23's 75.3 crore rupees, per Inc42 estimates published 2026-05-28.
- Who is Onsurity's biggest competitor?
- Plum (Plum Benefits) is repeatedly cited as Onsurity's top competitor across CB Insights profiles. Other near-identical Bengaluru rivals include Pazcare (2,000+ clients as of 2026-01-13), Nova Benefits, Loop Health, and Hyderabad-based ekincare, all sharing similar IRDAI distribution licenses.
- Could AI replace Onsurity?
- AI is automating claims and support workflows industry-wide (e.g. Insurity's Andromeda, Nov 2025, and Borealis, Feb 2026 releases), but Onsurity's IRDAI corporate-agent license and insurer partnerships remain a regulatory barrier pure AI tools cannot bypass without their own licensing, as of 2026.
- Who owns Onsurity?
- Onsurity is privately held and venture-backed, with no parent company or acquisition reported. Key investors include IFC, Creaegis, Quona Capital, and Nexus Venture Partners, with its last disclosed valuation around $124-128 million as of the September 2024 funding round.
- Has Onsurity secured an insurance underwriting license?
- No. As of a September 2025 Economic Times report, Onsurity's underwriting license application had not been approved more than 18 months after submission, and IRDAI has hardened its stance against granting such licenses to VC-backed fintech startups.
- How much funding has Onsurity raised in total?
- Estimates vary by tracker: Inc42 reports about $61 million across five rounds (2026-05-28), Crustdata reports $66.1 million (2026-06-13), and a September 2025 Economic Times report cites almost $90 million in total equity funding.
Timeline
- 2026-02-05IRDAI perpetual licensing for intermediaries takes effect; mis-selling penalties raised to 10 crore rupees
- 2026-01-06Onsurity wins Global AI Innovation Award at III Awards 2025 (marketing award, no metrics)
- 2025-10-13Onsurity states plans to use AI to streamline claims processing (Series B narrative)
- 2025-09-02ET reports IRDAI hardening against VC-backed insurtechs; Onsurity license unapproved 18+ months
- 2024-09-13Onsurity raises $21M from Creaegis, closing ~$45M Series B; cites 8,000+ client companies
- 2023-10Series B tranche 1: $24M led by International Finance Corporation (IFC)
- 2022-10Cricketer Anil Kumble makes undisclosed angel investment, becomes strategic advisor
- 2021-08Series A: $16M led by Quona Capital
- 2020-05Seed round: approximately $2.5M
- 2020Onsurity founded by Kulin Shah and Yogesh Agarwal in Bengaluru
Revision history
23 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Onsurity Financials 2026, Revenue, P&L & Cash Flow (2026-05-28)
- Onsurity - Headcount, Funding & Open Jobs (2026-06-13)
- Onsurity Bags $21 Mn Funding From Creaegis, Others (2024-09-13)
- Onsurity Is Revolutionizing Healthcare For India's SME Workforce (2026-03-23)
- Onsurity Technologies 2026 Company Profile
- Employee Healthcare Platform Onsurity Raises $16 Million Series
- Insurtech startup Onsurity raises $24 million led by IFC
- Irdai hardens stance: No insurance licence to VC-backed fintechs (2025-09-02)
- Onsurity Funding 2026 (2026-05-28)
- Onsurity site metadata/FAQ page
- Onsurity Secures $24 Million In Series B Funding (2025-10-13)
- Onsurity Wins The Global AI Innovation Award 2025 (2026-01-06)