Shutdown · Financial Services

Covrzy shuts down after three years

By Startup Enthusiast · 31 March 2026

What they do

The Bengaluru-based company shut down due to a persistent financial crunch, with CEO Ankit Kamra announcing the closure

It explored acquisition but failed to secure deals because of 18-month lock-in requirements for the founding team

Covrzy had onboarded 800+ businesses and was doing about 3 lakh policies per month at peak

Covrzy, a business insurance aggregator for startups and SMEs, shut down after about three years of operations.
Cofounder and CEO Ankit Kamra announced the shutdown, citing a persistent financial crunch.
Covrzy explored acquisition until December 2025 but failed to secure two M&A deals.
The first acquisition deal fell apart after six months due to a no-shop clause.
The second deal felt dishonest to Kamra, and acquirers wanted distribution, not innovation.
Kamra said acquirers didn't understand the core insight in the SME/business insurance space.
Covrzy is transferring clients to new insurance brokers and found placements for 13 remaining employees.

The company faced a persistent financial crunch that made continued operations unsustainable.
Failed acquisition attempts left Covrzy without a buyer or additional funding.
The 18-month lock-in requirement for the founding team deterred potential acquirers.
Kamra believed acquirers were more interested in distribution than the company's innovative insurance approach.

Covrzy was founded in 2023 and based in Bengaluru.
It operated as a business insurance aggregator for startups and SMEs.
The company onboarded 800+ businesses including redBus, Namma Yatri, FlixBus, and YoloBus.
Covrzy received an IRDAI direct broking (general) licence in 2024.
It launched a 'cargo delay' product and entered the embedded insurance space.
At peak, Covrzy processed about 3 lakh policies per month.
It was on track to close FY26 at ₹1.3-1.5 Cr revenue, up from ₹40 Lakh previously reported.