In a new round that includes both primary and secondary stake sales, digital insurance company Coverstack, a B2B platform under the Coverfox Group, plans to raise Rs 95.7 crore, or about USD 11 million. In the last five to six years, this will be the company's first significant fundraising effort.

Key highlights:

• Coverstack secures USD 11M (Rs.95.7 Cr) in a mix of primary and secondary stake sales, led by Elevar Ventures Partners with Rs.65 Cr infusion
• Post-money valuation pegged at Rs.476 Cr (USD 54M), marking the company’s first major fundraising in 5 to 6 years despite FY25 losses

According to its regulatory filing obtained from the Registrar of Companies (RoC), the Coverstack board has passed a special resolution to issue 19,216 preference shares and 3,187 share warrants at an issue price of Rs 33,827 each in order to raise Rs 75.78 crore in a primary round.

The founders, Sanjib Kumar Jha and Piyush Ranjan, invested a total of Rs10.75 crore, while Vistra ITCL (India) Limited, acting as trustee of Elevar Ventures Partners, led the round with a primary injection of Rs 65 crore.

Analysis indicates that Elevar Ventures Partners also paid Rs 20 crore for 5,912 equity shares from previous investors in a secondary transaction, bringing the round's total capital raised to Rs 95.7 crore, or roughly USD 11 million.

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Estimates place Coverstack's post-money valuation at approximately Rs 476 crore (USD 54 million). The Mumbai-based company has raised more than Rs 465 crore in this round and others.

The B2B division of Coverfox, Coverstack, serves as its technological platform for digital insurance distribution, facilitating the sale of insurance products by brokers, fintechs, and other platforms while assisting Coverfox in its transition to scalable, tech-based solutions.

Coverstack reported a loss of Rs 11.87 crore in FY25, but the company has not revealed its revenue for the fiscal year that ends in March 2025. It made Rs 2.63 crore from operations in FY24 and lost Rs 14.87 crore.