Covrzy, an insurtech startup backed by Antler, has officially shut down after approximately three years in operation. Cofounder and CEO Ankit Kamra cited a persistent cash crunch as the primary reason for the closure.
The startup faced significant challenges following the resignation of cofounder and CTO Veera Thota, who left in June 2025 to join Uber as an engineering manager. This departure marked the beginning of a series of issues for Covrzy.
As financial difficulties mounted, the company experienced a wave of departures from its leadership team and struggled to meet its internal targets. Kamra revealed that Covrzy was exploring acquisition opportunities until December 2025 but failed to secure two potential deals due to restrictive terms.
“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 second deal felt dishonest,” Kamra shared on LinkedIn.
Founded in 2023 in Bengaluru, Covrzy aimed to help businesses protect themselves against various risks by offering tailored insurance recommendations for startups and SMEs based on their specific needs.
Throughout its journey, Covrzy onboarded over 800 businesses, including notable clients like redBus, Namma Yatri, FlixBus, and YoloBus. In 2024, the startup received a direct broking license from IRDAI, allowing it to operate as a direct insurance broker.
At its peak, Covrzy claimed to process around 300,000 policies monthly and introduced innovative products such as ‘cargo delay’ while venturing into the embedded insurance market.
Despite raising $386,000 from Antler and Shastra VC during its early stages, the startup was projected to generate ₹1.3–1.5 crore in revenue for FY26, a significant increase from ₹40 lakh previously reported.
Currently, Kamra is focused on transitioning clients to new insurance brokers and ensuring placements for the remaining 13 employees.
