- Alok Agarwal, CFO, Reliance Industries and Zhooben Bhiwandiwala, President, Mahindra Partners co-invest along with Unitus Ventures.
- i3 Systems will leverage the funds to rapidly scale up its Platform and out-of-box AI models portfolio for BFSI customers, while expanding its global presence.
10th September 2020, Mumbai: In a pre-series A investment, insurance-tech startup i3 systems has raised USD 1.5 million from Unitus Ventures. i3 Systems is India’s leading AI product company for insurers, to estimate the medical risk and cost of care. The products work seamlessly on digital and unformatted data in complex healthcare and financial documents. The startup plans to use the funds to advance technology that enables seamless adoption of their product across all repetitive business processes in the BFSI industry.
Radha Kizhanattam, Partner, Unitus Ventures commented, “Unitus is excited to continue backing i3 Systems through their journey. The company is disrupting the traditional way of processing documents and the associated challenges with faulty decisions. Data-centric decision making and digitised processing is the way forward and a necessary step for the insurance industry to reach 800 million people from the current 200 million.”
Dr. Mallesh Bommanahal, co-founder & CEO said, “The shift to digitisation of processes and application of AI is following the trend in adoption of Cloud and RPA technologies.
i3 Systems has rapidly grown with enterprise customers who are leaders of the insurance industry and has witnessed huge demand from others recently.
With our solutions, i3claim and DataMD, we have processed over 3.5 million health claims and 6 million policy proposals till date. With Unitus Ventures and our new investors backing us, we plan to utilise the funds to grow our AI models portfolio for our customers and increase global footprints. With access to the data and domain knowledge required to build GPT-3 scale artificial intelligence eventually, i3 Systems is here to bolster the Enterprise AI industry.”
Why was i3 Systems started?
i3 Systems was conceptualized in 2016 when founders Dr. Mallesh Bommanahal and Varzavand Batliwala, saw that 90% of the data in insurance companies was in the form of free text in documents. This made the data inaccessible to AI which had the potential to simplify and speed-up processing of insurance claims. The prevalent customer grievances in insurance were lack of transparency and unreasonably long settlement time for claims, as the insurers struggled with document-centric processes. These can be solved by modern technologies like AI models on Cloud, Robotic Process Automation (RPA) platforms, and data analytics tools.
Sharing his thesis for investing in i3 Systems, Zhooben Bhiwandiwala, President at Mahindra Partners and Member of Mahindra Group Executive Board, said, “Enterprise AI is poised to witness explosive growth in a post-COVID world. i3 Systems, powered by a super motivated founding team, has demonstrated impressive business outcomes with a customer base comprised of who’s who of the insurance industry. Their retention perspectives are their strength, and the team has shown credibility with reliable products and fast core-system integrations. I believe their product plans will entrench them in a formidable position in the Enterprise AI industry in the next few years”.
Prominent facts about i3 Systems
- Deploying a multitude of piecemeal solutions caused further complications in the process. i3 Systems built an end-to-end, integrated solution called i3claim which reduced claim processing time to 6 minutes from more than 60 minutes, while reducing payment leakages significantly. The startup is currently scaling the deployment of this approach to a variety of insurance business processes in as quickly as 3 weeks. With growing interest from insurance companies, they have achieved a net revenue retention of 200% across their enterprise customers.
- i3 Systems was one of 30 companies globally, selected to be a part of the DIFC Fintech Hive Accelerator Cohort in 2019 which initiated their foray in the Gulf markets.
- i3 Systems has seen their annual recurring revenue (ARR) increase by 5 times year-over-year with the support of a dedicated Delivery team to provide customisation of its products and a Data Science team with strong Natural Language Processing (NLP) capabilities.
- With i3 Systems’ platform 60% of the policy underwriting can be automated and turnaround time for a claim settlement is reduced to 6 minutes from more than 10 days currently
About i3 Systems
i3 Systems’ is addressing issues in India’s health insurance industry through its data-centric digital solutions and AI products that enable accurate and automated health insurance underwriting and claims processing. i3 Systems has successfully delivered products through partnerships with multiple financial services organisations and consortiums, for use cases such as insurance underwriting, medical claims, lending, invoice processing, agreement processing, etc. i3 Systems has partnered with 12 institutions in the BFSI and Technology industries to develop AI products for a variety of business processes. More about i3 Systems >
About Unitus Ventures
Unitus Ventures is the leading venture fund in India that supports early-stage fintech, healthcare, and jobtech startups with India scale and global potential. Launched in 2012, Unitus Ventures is a founding member of Capria Network, the leading global network of emerging market fund managers collaborating to deliver superior returns and scaled impact. Unitus Ventures is based in Bangalore and Seattle. More about: https://unitus.vc and http://capria.vc/network