Cover Genius Closes US$80M Series E Funding Round
Cover Genius, a top insurtech company specialising in embedded insurance has announced the successful closure of a US$80 million Series E funding round. This round was led by Spark Capital and included support from existing investors such as Dawn Capital, King River Capital, and G Squared, despite the current tech funding slowdown.
These strategic initiatives allow Cover Genius to expand on their tech-forward insurance solutions integrated directly into various platforms, enhancing user experiences and offering easy access to protection at the point of need. The funds will invest in technology to improve digital insurance distribution solutions, AI claims handling and the protection solutions available The investment follows a strong year of sustained growth for the company, including a 107% YOY growth and 145% NRR.
The new funding will also enable Cover Genius to expand its global footprint, particularly in the Asia-Pacific and European markets, where demand for embedded insurance solutions is rapidly increasing. By leveraging advanced technologies such as machine learning and big data analytics, Cover Genius aims to streamline the insurance process, reduce fraud, and provide more personalised insurance offerings.
Cover Genius also plans to bolster its partnerships with leading digital companies across various industries, including travel, retail, logistics, and fintech. These collaborations will help integrate insurance products seamlessly into customer journeys, making insurance more accessible and relevant to consumers.
Spark Capital, a US-based VC firm recognised for partnering with category-defining technology companies like Twitter, Coinbase, and Slack, spearheaded the Series E. In addition, showing their continued support for the business, existing investors Dawn Capital, King River Capital and G Squared also participated.
Angus McDonald, CEO and Co-founder of Cover Genius says: “The display of trust from our investors highlights the resilience of our embedded business model and potential for growth, particularly as we strategically focus on key markets like travel, retail, ticketing, and logistics. Our collaborations with well-known brands, including Uber, Ryanair, and eBay, demonstrate our unique ability to create customer-centric protection solutions backed by technology, policy innovation, and industry expertise.”
In another recent development, Cover Genius has forged a new partnership with Adyen, selecting the FinTech company as its latest payment processing partner. Additionally, in October 2023, Cover Genius collaborated with the shipping platform Shippo to launch Shippo Total Protection, an innovative insurance solution for eCommerce merchants aimed at ensuring a positive shipping experience for their customers.
“Cover Genius’ technology platform, global presence and focus on digital claims initially caught our attention years ago,” said James Kuklinski, General Partner at Spark Capital. “By tackling common insurance obstacles such as limited market coverage, lengthy claims processes, and a lack of product diversity, the company has evolved into a category leader.
"We couldn’t be more excited to partner with the company as they continue driving more value to partners and a best-in-class consumer experience.”
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