Zopper eyes expansion into EMs, targets 50-60% growth in India in 3 years

Zopper is considering expansion beyond India, primarily targeting emerging markets with a growth trajectory similar to the country’s insurance industry. The insurtech platform aims for a 50 to 60 per cent compound annual growth rate (CAGR) in gross written premium (GWP) in the Indian market over the next two to three years.

As a business-to-business (B2B) distribution-focused insurtech, Zopper plans to expand its distribution ecosystem and strengthen partnerships with banks, non-banking financial companies (NBFCs), travel portals, brands, and retail chains. The company, operating in over 1,200 cities with more than 200 partners, utilises Zopper APIs to enhance the scope of distribution channels and reach a broader audience in newer markets.

Mayank Gupta, co-founder and chief operating officer (COO) Zopper, said, “While we keep our options open regarding new markets, our primary focus remains on the Indian market. We have a GWP growth of 100 per cent year on year and are hopeful of touching $300 million by March 2024. Even for the next two to three years, we are targeting a growth rate of about 50 per cent to 60 per cent CAGR.”

"Since we are a B2B company, we have to plug and play our technology into a large business that already has a captive audience and, therefore, our growth comes very fast because the moment we are able to integrate with a bank or with an e-commerce company or with a retail chain, their entire captive audience is available for them to offer insurance and therefore the off-take is very fast,” he said.

Zopper's revenue is diversified across segments, with 30 per cent from device and appliance protection (assurance), 40 per cent from the motor vertical, 20 per cent from health, and 10 per cent from life insurance. In the health insurance sector, the company focuses predominantly on Hospicash and super top-up health insurance plans in collaboration with specific partners.

On fundraising plans, Gupta said the company is formulating a three-year strategy to assess additional funding needs, having raised $75 million in Series C funding in 2022, which was used for technological advancements and team expansion.

He stressed the importance of catering to individuals new to insurance, and creating awareness and coverage options for different demographic segments, including housewives and daily wage earners, in rural areas. By categorising the audience into different sets and offering tailored insurance plans, Zopper aims to address specific needs effectively.

Speaking on technological disruptions in distribution, he noted that technology was integral to the sale of insurance policies and that Zopper’s artificial intelligence and machine learning models recommend insurance plans based on customers' needs and financial situations. For banks and NBFCs, technology-driven sales provide insights into leads generated from creation to conclusion, enhancing sales efficiency and preventing fraudulent activities.

The company leverages distribution channels of partnering banks and NBFCs to offer low-friction insurance, making it easily accessible without operational hassles. Through this approach, Zopper aims to increase awareness and openness to insurance investment by allowing people to experience its advantages in various circumstances.