Covrzy, an Antler-backed insurtech startup based in Bengaluru, has shut down after about three years of operation due to a persistent cash crunch. The company, which had around 13 employees at closure, saw its workforce fully laid off as operations wound down. This followed the resignation of its cofounder and CTO last year, which triggered a series of top-level exits and missed internal targets. Despite exploring acquisition deals until December 2025, two potential M&A bids fell through, with acquirers showing interest only in Covrzy's distribution rather than its innovation in the SME insurance space. Founded in 2023, the startup had onboarded over 800 businesses and was projecting revenue growth, but financial instability ultimately led to its demise in early 2026.
