Coverstack Secures Rs 95.7 Crore in New Funding Round
Coverstack, a digital insurance company and B2B platform within the Coverfox Group, is poised to acquire Rs 95.7 crore (approximately $11 million) in a new round of funding that includes both primary and secondary stake sales. This marks the company’s first substantial fundraising effort in the last five to six years.
Details of the Funding Round
The board at Coverstack has approved a special resolution to issue 19,216 preference shares and 3,187 share warrants, priced at Rs 33,827 each, to generate Rs 75.78 crore in a primary phase, as indicated by a regulatory filing accessed from the Registrar of Companies (RoC).
Vistra ITCL (India) Limited, serving as trustee for Elevar Ventures Partners, spearheaded the round with a primary investment of Rs 65 crore. Additionally, the founders, Sanjib Kumar Jha and Piyush Ranjan, contributed a total of Rs 10.75 crore.
Breakdown of Total Capital Raised
As per analysis by Startup Superb, Elevar Ventures Partners further acquired 5,912 equity shares from existing investors in a secondary transaction valued at Rs 20 crore, bringing the total capital garnered in this round to Rs 95.7 crore (around $11 million).
Coverstack’s post-money valuation is anticipated to be about Rs 476 crore ($54 million), according to estimates made by Startup Superb. Following this funding round, the Mumbai-based firm has secured over Rs 465 crore through various financing efforts.
The Role of Coverstack in Digital Insurance
Coverstack serves as the technological backbone for digital insurance distribution within Coverfox, facilitating fintech companies, brokers, and other platforms to provide insurance products. This underpins Coverfox’s transition towards scalable, technology-driven solutions.
Financial Performance
While Coverstack has not revealed its revenue for the fiscal year ending March 2025, the company did report a loss of Rs 11.87 crore for FY25. In FY24, it generated operational revenue of Rs 2.63 crore and incurred a loss of Rs 14.87 crore.