Paramount raises ₹2.5 crore fund from Finvolve, India Accelerator

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Paramount raises fund in a major step towards transforming India’s motor insurance claims sector. The AI-powered claims-as-a-service (CaaS) startup has secured ₹2.5 crore in funding from Finvolve and India Accelerator, marking its first institutional round. This round, structured as compulsorily convertible preference shares (CCPS), will help Paramount expand its claim automation solutions, enhance AI technology, and accelerate its presence across insurance companies nationwide.

Founded by seasoned professionals from the insurance industry, Paramount uses proprietary software to address the inefficiencies in motor claims—an area that accounts for over 30% of India’s general insurance sector. With the government’s push for ‘Insurance for All by 2047’, this sector is ripe for disruption. The startup is currently one of the four DSPs empanelled by PSU insurers under a key government initiative, handling claims up to ₹50,000.

Paramount operates 58 claim hubs across 30 regions and aims to scale rapidly by March 2025. The investment will be directed toward talent acquisition, AI tool development, and market expansion. With this support, the startup hopes to replace traditional, manual claims with faster, tech-driven, and cost-effective solutions. Finvolve’s Ashish Bhatia emphasized that Paramount aligns with their vision to back impact-driven, scalable ventures.

This fundraise underscores the ongoing shift in India’s insurance tech ecosystem. As digital transformation accelerates, players like Paramount are at the forefront of building the future of claims management. Paramount raises fund at a time when both innovation and policy are converging, making this an important startup development for the insurance and insurtech markets in India.

1. Paramount raises fund: Inside the business of AI-driven motor claims

Paramount Services is at the intersection of AI and insurance tech. Operating as a digital-first Claims-as-a-Service (CaaS) provider, Paramount is redefining how motor claims are assessed and processed. Their full-stack platform handles claims from the First Notification of Loss (FNOL) to settlement, cutting down the dependency on manual inspections and outdated processes.

What sets them apart is their AI-led software, which automates assessments, improves accuracy, and significantly reduces claim resolution times. This system not only streamlines insurer workflows but also reduces fraud and operational costs.

Paramount currently services motor insurance companies and aims to be the backbone of claims processing across India. Their key differentiator lies in their scalable architecture and deep domain expertise. In a highly fragmented industry, such technological standardization provides immense value.

2. The founding team: Veteran minds behind the innovation

2.1 Domain expertise and insurance legacy

Paramount was co-founded by Naveen Tandon, a long-time insurance professional with deep insights into claims operations. With a strong background in managing operations for insurance firms and TPAs, Tandon saw a gap in automation within claims processes and built Paramount to bridge it.

His co-founding team includes experts from tech, claims, and operations—each bringing 15+ years of hands-on experience. Their collective background helped Paramount swiftly scale operations and gain industry credibility.

3. Funding overview: ₹2.5 crore boost from Finvolve, India Accelerator

3.1 Investment structure

Paramount raises fund through a ₹2.5 crore investment structured via CCPS (Compulsorily Convertible Preference Shares). This is the startup’s first institutional raise and marks a significant inflection point in its growth journey.

3.2 Strategic investor confidence

Finvolve, a multi-stage VC fund, and India Accelerator, known for backing high-impact early-stage startups, co-invested in this round. Ashish Bhatia, the co-founder of Finvolve and founder of IA, expressed confidence in Paramount’s model. He cited inefficiencies in current claims processing and praised Paramount’s technology-driven, scalable solution.

4. Business model and revenue streams

4.1 How Paramount earns

Paramount follows a B2B SaaS model. Insurance companies subscribe to their platform and pay based on claim volume and service integrations. Revenue grows as claim counts increase and more partners join the network.

They also generate value-added income through analytics tools, claims audits, and fraud detection modules built into their software. With expanding adoption among PSUs and private insurers, their ARR is set for a significant surge in FY25.

5. Market size, trends, and government support

5.1 Growing demand for tech-driven insurance

The Indian motor insurance segment contributes over 30% to the overall general insurance market. With 250+ million vehicles on road and rising digital penetration, tech-driven claims processing has moved from optional to essential.

Government initiatives like ‘Insurance for All by 2047’ and mandatory insurance inclusion are accelerating this shift. Paramount, being one of four Digital Service Providers (DSPs) empanelled by PSU insurers, is at the centre of this policy transformation.

5.2 Trends supporting insurtech scale-up

There’s a rise in demand for claim automation, fraud detection AI, and real-time processing. Insurtech startups that blend deep domain expertise with scalable SaaS tools are attracting investor attention.

With manual claims still dominating small-ticket repairs, Paramount’s automated flow for ₹50,000 and below tickets fills a long-ignored gap. This shift has helped reduce claim costs, turnaround time, and dispute rates.

6. Operational footprint and scaling goals

6.1 Claim hubs and regional coverage

As of April 2025, Paramount operates 58 claim hubs across 30 regional offices. These hubs handle real-time inspections, tech-assisted resolutions, and insurer integrations.

With this robust backend, the startup aims to scale to 100+ hubs and onboard 10+ insurers by March 2026. Their hybrid model—tech + on-ground presence—helps ensure quality, accuracy, and compliance.

6.2 What’s next on the roadmap?

The fresh infusion of capital will be channelled into four main areas: proprietary AI tool enhancement, hiring top tech and insurance talent, expanding into new geographies, and strengthening quality assurance layers.

7. Why this fundraise matters

This funding is more than capital—it’s validation. Paramount raises fund not just to expand but to become a foundational layer in India’s evolving insurtech stack. It reflects how Indian VC funds like Finvolve are now chasing sector-specific, domain-deep SaaS bets.

Paramount stands out because it doesn’t just offer automation—it understands the business nuances, regulatory context, and customer pain points. That’s why PSU insurers, often slow to adopt tech, have already onboarded them.

8.Learning for Startups and Entrepreneurs

1. Identify overlooked niches in large industries: Paramount tapped into the long-ignored motor claims automation space.
2. Pair domain expertise with scalable technology: Deep insurance experience gave them an edge in building relevant products.
3. Bootstrap before institutional raise: Proving product-market fit pre-funding ensured investor confidence.
4. Go where policy is headed: Paramount aligned its services with India’s ‘Insurance for All’ roadmap.
5. Blend tech with operational execution: Software alone isn’t enough; real-world execution drives outcomes.

How The Startups News supports the insurance innovation space

When it comes to media coverage of rising insurtechs transforming traditional insurance sectors, The Startups News leads with in-depth, humanized reporting. As a dedicated startup news platform, it connects emerging businesses with the right audience, helping founders gain visibility and investors track meaningful progress. In the fast-evolving world of AI-led claims automation, The Startups News is your go-to hub for daily tech news, startup updates, and deep dives into India’s insurance innovation journey.