Insurtech startup GramCover has raised $7 million co-led by Inflexor Ventures and Siana Capital in a Series A round. Stride Ventures and existing ventures like Omidyar Network India, Emphasis Ventures and Flourish Ventures also participated in the funding round.

The fresh capital will be used to strengthen the technology and product offerings and also scale up the business and support functions, the startup said in a statement. GramCover said that it will also expand its point of sale network, tech and operation teams across geographies.

“We, at GramCover, will be strengthened by their deep-tech domain expertise and their startup experience as we work towards building a growth and profitability focussed rural insurtech organization,” said Dhyanesh Bhatt, co-founder and Group CEO.

“With a solid end to end deep technology platform in conjunction with a human-assisted local agency network, we feel GramCover is well-positioned to continue its high-growth trajectory. Further, the business model helps achieve the twin objectives of profitable growth and providing livelihood risk protection to a large rural population of India,” said Dinesh Goel, partner, Siana Capital.

Since its inception till FY21, around 3.2 million Indian farmers have purchased insurance through GramCover and the startup has customers in 8000 villages, 450 blocks, 50 districts and 13 states.

“We are pleased to co-lead the investment and partner with a stellar team of Jatin and Dhyanesh, with demonstrated capabilities of execution. We believe GramCover will play a pivotal role in radically transforming the insurance landscape of Bharat,” said Pratip Mazumdar, Partner at Inflexor Ventures.

The startup said that it aims to insure more than 10 million farmers in the next two to three years with a premium target of Rs 1000 crore. The firm also plans to extend its presence across other states apart from Bihar, West Bengal, Assam, Uttarakhand, Andhra Pradesh and Maharashtra.