Antler-Backed Covrzy Shuts Down Due To Cash Crunch
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Antler-backed insurtech startup Covrzy has shut shop after being operational for about three years. Cofounder and CEO Ankit Kamra told Inc42 that the startup had to wind down operations primarily due to a persistent financial crunch.
He said Covrzy started falling apart after cofounder and CTO Veera Thota resigned last year to pursue other opportunities. Thota joined Uber as an engineering manager back in June 2025.
Amid the financial crunch, the startup began seeing a trail of exits from its top deck. The startup was also unable to meet internally set targets. Kamra informed that the startup was exploring an acquisition deal until December 2025. He said that the startup failed in securing two M&A deals as both buyout deals required 18-month lock-ins for the founding team.
“Six months into the first deal, locked us in with a no-shop clause and then later 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 said in a post on LinkedIn.
Founded in 2023, the Bengaluru-based startup aimed to assist founders in securing their businesses against a variety of risks. The business insurance aggregator offered the insurance recommendations for startups and SMEs based on their needs, such as workforce and category of work.
“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, the startup received IRDAI’s direct broking (general) licence to operate as a direct insurance broker to offer business insurance solutions. Kamra added that Corvzy also launched a unique product called ‘cargo delay’, while it also entered into the embedded insurance space, and claimed that it did about 3 Lakh policies per month at peak.
Since its inception, the Bengaluru-based startup raised $386K from Antler and Shastra VC, when Corvzy was at pre-product and pre-business stage.
On the financial front, “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,” he said.
Currently, Kamra is focussed on transferring its clients to new insurance brokers, and claimed that he has made sure to find placements for its 13 remaining employees.
The post Antler-Backed Covrzy Shuts Down Due To Cash Crunch appeared first on Inc42 Media.
