In its maiden deal from the brand new fund, Zodius has put in about $15 million within the startup. Accel India, an present backer of Onsitego, has additionally participated on this newest financing spherical, with Accel US too becoming a member of the corporate’s cap desk.
“Onsitego is Leveraging technology in a very efficient manner, not only in terms of data for the underwriting of warranties, but also their after-sales service that is provided to consumers. That process is broken, not only in India, but also globally…Moreover, the business has been built in a highly capital-efficient manner,” Shilpa Kulkarni, managing director, Zodius Development Fund, informed ET.
Based by IIM-Bangalore alumnus Kunal Mahipal in 2010, Onsitego had beforehand raised $2 million in financing in 2015. The corporate will now use the proceeds to primarily increase its prolonged guarantee product, to annual upkeep contracts and attain out to customers immediately.
“In the extended warranties business, we are still a very small part of the customer’s lifecycle as far as ownership experience is concerned. With this capital, we intend to go into the entire lifecycle of the customer…The strategy for this is largely micro-market based,” Onsitego chief govt Mahipal informed ET.
Moreover, the decade-old firm, which works with various India’s largest offline and on-line retailers, has created a house guarantee product, overlaying a number of shopper durables.
The corporate will use a part of the capital raised additionally in the direction of branding and advertising and marketing efforts, because it targets direct acquisition of customers.
Zodius’ Kulkarni mentioned Onsitego’s Collection B spherical may very well be prolonged to accommodate different new traders.
That is the primary funding by Zodius from its newest $200 million India Development fund, for which it’s nonetheless elevating capital. Acquired by homegrown monetary companies firm Avendus in 2017, Zodius has been positioned as a mid-market, new-economy, digital-focused funding fund, usually deploying $15-25 million in offers.
The fund primarily focuses on next-generation consumption-focused firms, underpinned by know-how, that focus on the following 100 million customers, throughout sectors corresponding to retail, healthcare, training, logistics, software program, companies and monetary companies.
It had beforehand raised Zodius Know-how Fund and Zodius Know-how Alternatives Fund, which had a cumulative corpus of $140 million and invested in on-line furnishings retailer PepperFry, on-line grocery main BigBasket and FreshMenu, amongst others. It has additionally recorded a partial exit from BigBasket.