Hyderabad, November 03, 2025: Kshema General Insurance Limited has received approval for a USD 20 million capital infusion from the Green Climate Fund (GCF), the world’s largest climate fund established under the Paris Agreement. The investment aims to strengthen financial resilience among India’s small and marginal farmers, who make up nearly 86% of the country’s farming population, and safeguard them against climate-related vulnerabilities.
The infusion will help expand Kshema’s insurance offerings to reach a larger number of uninsured farmers, while enhancing its underwriting capacity. It will also accelerate the development of Kshema’s Cognitive Engine, a technology platform designed to deliver customised insurance products and provide weather alerts, crop health insights, and guidance on sustainable agricultural practices.
Mr. Natraj Nukala, Founder, Kshema General Insurance Limited, said: “We are grateful to the board of GCF for seeing the value of our proposal in the context of adaptation to climate change. I also thank the Ministry of Environment, Forests and Climate Change and the empowered committee members representing other relevant authorities along with the National Bank for Agriculture and Rural Development for their continuous guidance and support.”
Kavita Sinha, Director of the Green Climate Fund’s Department of the Private Sector Facility, added: “‘Harnessing Insurance for Climate Resilience in Indian Agriculture’ is a landmark for GCF – it is GCF’s first investment to support an innovative microinsurance solution enabling provision of crop insurance against climate vulnerability for smallholder and marginal farmers. This comprehensive solution includes early warning and capacity building of vulnerable farmers for sustainable agriculture practices. 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.”
The funding aligns with India’s goal of ‘Insurance for All by 2047’, complementing the Government of India and IRDAI’s policy directions to expand insurance access across Tier-2 and Tier-3 towns.
Kshema General Insurance, licensed by IRDAI in 2023, leverages AI-driven algorithms and spatial data analytics to assess and price risks accurately. Through its digital platform, the company offers products such as Sukriti, Prakriti, and Samriddhi, and its bancassurance product Kisan Sathi, designed to protect farmers from income shocks due to extreme weather and other perils.
The investment from GCF marks a significant step toward advancing climate-resilient agriculture in India and scaling up inclusive risk protection for millions of smallholder farmers across the country.
x
.jpg)
.jpg)
.jpg)
