Hyderabad: Kshema General Insurance Limited has secured a capital infusion of USD 20 million from the Green Climate Fund (GCF), the world’s largest climate-focused investment body established under the Paris Agreement. The funding marks GCF’s first-ever investment in a microinsurance solution tailored to protect India’s smallholder and marginal farmers from climate-related risks.
The capital will be deployed to expand Kshema’s reach among the 86% of Indian farmers who remain vulnerable to climate shocks and largely uninsured. It will also strengthen the company’s underwriting capacity and enhance its proprietary technology platform — the Kshema Cognitive Engine — which delivers curated insurance products, weather alerts, crop health updates, and promotes sustainable agricultural practices.
Natraj Nukala, Founder of Kshema General Insurance Limited, expressed gratitude for the support:
“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, the empowered committee members, and NABARD for their continuous guidance and support.”
Kavita Sinha, Director of GCF’s Department of the Private Sector Facility, highlighted the significance of the investment:
“‘Harnessing Insurance for Climate Resilience in Indian Agriculture’ is a landmark for GCF — our first investment in an innovative microinsurance solution that provides crop insurance against climate vulnerability for smallholder and marginal farmers. This comprehensive solution includes early warning systems and capacity building for sustainable agriculture.”
She added that GCF’s partnership with national institutions aims to protect rural livelihoods while fostering resilient agricultural systems across India.
This infusion also aligns with the Government of India and IRDAI’s recent policy push to expand insurance access across Tier-2 and Tier-3 towns, supporting the national goal of ‘Insurance for All’ by 2047.
Kshema’s strengthened platform is expected to play a transformative role in building climate resilience, financial inclusion, and sustainable growth in India’s rural economy.
