Antler-backed insurtech startup Covrzy has closed its doors after approximately three years of operation. CEO and cofounder Ankit Kamra told Inc42 that the primary reason for the shutdown was a continuous financial crisis.
Kamra stated that the situation worsened following the resignation of cofounder and CTO Veera Thota, who left to pursue other opportunities, joining Uber as an engineering manager in June 2025.
Amidst the financial difficulties, the startup experienced a series of departures from its leadership team and struggled to meet internal targets. Kamra noted that Covrzy explored potential acquisition deals until December 2025 but was unsuccessful due to the requirement of 18-month lock-in periods for the founding team in both proposed buyout agreements.
“Six months into the first deal, [we were] locked us in with a no-shop clause and then later [the deal] backed out… After the first one fell apart- signing up for the 2nd deal felt dishonest… Neither acquirers understood our core insight about problem statements in the SME/business insurance space. They wanted our distribution, not our innovation,” Kamra shared in a LinkedIn post.
Founded in 2023 and based in Bengaluru, Covrzy aimed to assist founders in protecting their businesses against various risks. The insurance aggregator provided tailored insurance recommendations for startups and SMEs based on their specific needs, such as workforce size and industry.
According to Kamra, “We onboarded 800+ businesses over the course of its journey. Our client portfolio included marquee names such as 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 offering business insurance solutions. The company also launched a product called ‘cargo delay’ and entered the embedded insurance sector, claiming to have processed approximately 300,000 policies per month at its peak.
Since its inception, the Bengaluru-based startup raised $386,000 from Antler and Shastra VC during its pre-product and pre-business phase.
Financially, Kamra stated, “Covrzy was on track to close FY26 at ₹1.3–1.5 Cr in revenue, a significant increase from our previous reported figures of ₹40 Lakh.”
Kamra is currently focused on transitioning Covrzy’s clients to new insurance brokers and ensuring placement for the remaining 13 employees.