MICROCAPITAL STORY: Indian Information Technology Firm Gradatim Launches Microinsurance Technology Platform

India-based information technology firm Gradatim IT Ventures recently announced the launch of “MF-Insure”, a new technology platform designed to consolidate and simplify various business operations of microinsurance providers. Details on MF-Insure’s design features are not yet available. However, a platform that appears to be a predecessor is described on the company’s website as a product that streamlines business processes in the areas of Billing and Collection, Insurance Policy Servicing, and Claims.

A “technology platform” offered by an IT consulting firm generally refers to a set of software applications or hardware that automates or increases the efficiency of certain business processes, ultimately lowering the organization’s administrative costs. Often plagued with high administrative costs compared to other financial institutions, MFIs often seek to implement technology platforms such as MF-Insure. Some of India’s largest MFIs have enlisted the help of IT companies to keep such administrative costs low and streamline operations. SKS microfinance, which serves 500,000 borrowers, has partnered with such firms as Microsoft, Compulink, InfoTech, HCL, Tulip IT, and Wipro to lower administrative costs through IT services.

Founded in January 2007, India-based Gradatim is a privately-held IT company providing services for MFIs that, according to its website, “integrate technology, business process and services seamlessly to offer cost effective solutions to organizations in the Microbanking sector.” Gradatim’s other products include the technology platform MF Resolve designed for microfinance institutions, and Electronic Ligitation Utility Services, a platform that assists law firms with data management issues. On its website, Gradatim describes its current client base as consisting of “over 10 client partnerships, and we work with large development banks”. Gradatim has yet to disclose specific client names.

Financial information on Gradatim is not available on the MIX Market, and is not disclosed on the Company’s website.

By Ryan Benson, Research Assistant

Additional Resources:

MicroCapital Story: Gradatim IT Ventures Begins Operations in India to Offer Solutions in Microfinance Sector, by Monica Sharma, August 9, 2007.

MicroCapital Story: Microfinance Interest Rates as a Function of Transaction Costs, January 9, 2006.

The Hindu Business Line: Gradatim launches India’s first micro-insurance platform, July 24, 2008.

India PR Wire: Gradatim launches India’s first MicroInsurance Platform – MF-Insure, July 24, 2008.

Gradatim: Home

The Financial Express: SKS Microfinance ties up with IT companies to reach out to larger rural households, February 6, 2008.

Microfinance Gateway: MF Resolve

Government of India: Non-Bank Financial Companies

MIX Market: SKS Microfinance