Time running out for insurtech, cash crunch.
Antler-backed insurtech startup Covrzy has shut down after about three years of operation, citing a persistent financial crunch. CEO Ankit Kamra told Inc42 that the startup had to wind down operations due to financial difficulties.
Covrzy’s challenges began after cofounder and CTO Veera Thota resigned last year to join Uber as an engineering manager. Amid the financial strain, the startup experienced multiple exits from its leadership team and struggled to meet internal targets. The company explored acquisition deals until December 2025 but failed to secure two M&A deals due to 18-month lock-in requirements for the founding team.
According to Kamra, one deal fell apart after six months due to a no-shop clause. He stated that potential acquirers were more interested in Covrzy’s distribution network than its innovation in the SME/business insurance space.
Founded in 2023 and based in Bengaluru, Covrzy aimed to assist founders in securing their businesses against various risks. The business insurance aggregator offered insurance recommendations tailored to startups’ and SMEs’ needs, considering factors such as workforce size and industry. Over its lifespan, Covrzy onboarded over 800 businesses, including redBus, Namma Yatri, FlixBus, and YoloBus.
In 2024, Covrzy received a direct broking (general) license from IRDAI, allowing it to operate as a direct insurance broker for business insurance solutions. The company launched a product called ‘cargo delay’ and entered the embedded insurance space, claiming to have processed approximately 300,000 policies per month at its peak.
Since its inception, the startup raised $386,000 from Antler and Shastra VC during its pre-product and pre-business stage. Despite the shutdown, Covrzy was on track to close FY26 with ₹1.3–1.5 Cr in revenue, a significant increase from the previous ₹40 Lakh.
Kamra is currently focused on transferring Covrzy’s clients to new insurance brokers and has ensured placements for the remaining 13 employees.
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