New Delhi, Nov. 3 -- Kshema General Insurance, which offers insurance products to Indian farmers, has received an approval for capital infusion of $20 million (around Rs 178 crore) from the board of the Green Climate Fund (GCF).
The company will utilise the capital to scale up offerings to reach a wider number of farmers and their crops, strengthen its technological platform Kshema Cognitive Engine, and provide services such as alerts on weather, and information on crop health to farmers.
The Green Climate Fund is a fund for climate finance that was established within the framework of the United Nations Framework Convention on Climate Change. The fund supports projects and other activities in developing countries.
Kshema said that the support from the global climate fund boosts Kshema's endeavour in following the IRDAI's recent policy directions to expand insurance access across Tier-2 and Tier-3 towns and complements national efforts to achieve 'Insurance for All' by 2047.
"By partnering with national institutions to deploy innovative insurance solutions, GCF is helping protect rural livelihoods from climate shocks while promoting more sustainable and resilient agricultural systems," Kavita Sinha, Director of the Green Climate Fund's Department of the Private Sector Facility, said in a press note.
Rise in expenses
Hyderabad-based Kshema General Insurance was incorporated in 2018 and operates as a subsidiary of Kshema Holdings.
Kshema, which received a license from the Insurance Regulatory and Development Authority of India (IRDAI) in January 2023, provides over 20 products across crop insurance, fire insurance, health insurance, and motor insurance.
The company has insured 7.7 lakh farmers in 2025. The sum insured is at around Rs 8,920 crore, according to the company's latest annual report.
The company's net profit fell to Rs 38 crore in the financial year ended March 2025 from around Rs 45 crore a year ago, due to higher net claims. The company has incurred net claims of Rs 349 crore in FY25, higher than Rs 281 crore a year ago.
The gross written premium rose nearly 36% year-on-year(y-o-y) to around Rs 771 crore in FY25.
"Given that FY25 marks the second full year of insurance operations, a rise in operating expenses was anticipated. These elevated costs primarily stem from an increase in recruitment activities to strengthen the workforce and heightened marketing efforts aimed at establishing a stronger brand recall," the report said, adding that despite the higher expenditure, the company's financial resilience was supported by enhanced premium retention, and this led to robust internal cash flow generation.
Published by HT Digital Content Services with permission from VC Circle.