Insurtech startup Pibit.AI raises $7 million from Stellaris, others

Insurtech startup Pibit.AI has raised $7 million in a round led by Stellaris Venture Partners, with participation from existing investors Y Combinator and Arali Ventures.

Founded in 2020 by Akash Agarwal, Pibit.AI has built underwriting systems which are used to evaluate risk and define the insurance premium. This, he says, makes the underwriting faster and more accurate.

The San Francisco-based startup plans to deploy the funds in research and development to strengthen its product, and expand its team, added Agarwal.


“We are building a vertical AI for a very specific niche of business insurance in the US,” said Agarwal in a conversation with ET. “The data is completely unstructured, there is no definite amount of data needed to evaluate risk better, and there is no system in place. We have built a system to solve this problem.”

Pibit has built a unified system called CURE that aims to streamline the underwriting lifecycle. It handles document submission, checking, research, and risk analysis, and helps make the workflow efficient, said Agarwal.

“There is a lot of hallucination on LLM (large language model) platforms, so we have built an agentic underwriting platform which is the backend of our system,” Agarwal said.

According to the company, its users — currently based in the US — have reported 85% faster underwriting. The company plans to expand and is looking at regions like Europe next.

“Underwriting has long been constrained by manual reviews, inconsistent data, and tools that haven't kept pace with rising volumes,” said Alok Goyal, partner, Stellaris Venture Partners, in a statement. “With CURE™, Pibit.AI automates and unifies these workflows, improving accuracy, reducing costs, and accelerating quote generation to drive higher revenues.”

So far, the startup has raised $7.5 million in two rounds. In India, its office is based out of Bengaluru where the company plans to expand its team after the recent funding round.