Cover Genius has raised US$70mn in an oversubscribed Series D funding round, which it says represents a significant but undisclosed “valuation uplift” on its Series C raise in 2021.
The global insurtech, which specialises in embedded insurance, has grown considerably over the last year alone with daily gross written premiums (GWP) reaching US$1.1mn and year-on-year revenue almost trebling. In August, it forged a new partnership with BNPL provider Zip to offer insurance cover on purchases at checkout – one of several new partnerships that the insurtech has announced in recent months.
Cover Genius plans to use the money to support its rapid growth and the expansion of its global insurance distribution platform, XCover. The raise was led by Dawn Capital with participation from New York-based Atlas Merchant Capital – a new investor – as well as existing investors including GSquared and King River Capital.
‘Highest ever’ round is validation for Cover Genius
Cover Genius CEO and Co-Founder Angus McDonald says: “We’ve always been strategic about our approach to fundraising, and closing our highest ever funding round in a challenging environment for raising capital reinforces the strength of our embedded business model. Customers are dissatisfied with traditional insurers, who went missing during the pandemic and consistently deliver low post-claim Net Promoter Scores (NPS) scores. Our tech-forward solution focuses on a seamless and transparent customer journey and, in contrast to traditional insurers, delivers a post-claim NPS of +65.”
Dan Chaplin, Principal at Dawn Capital, continues: “Cover Genius is rethinking insurance distribution with a tech-forward platform that enables partners and end-customers to provide and access protection at the point of need.
“Embedded insurance is a rapidly growing segment of the market, and Cover Genius has built a leading platform that is globally enabled, multi-line and end-to-end. They’re working with some of the world’s largest platforms in multiple industries, and have combined exponential growth this year with an exceptionally strong business model. We’re excited to support Cover Genius as it continues to reshape the insurance industry and enable easy protection for consumers and businesses.”
Capital raise comes on the back of impressive growth
Originally founded in Australia, Cover Genius’ expansion has seen it open subsidiaries in the US, the UK and Europe. In total, it is licensed or authorised in over 60 countries and its American business operates in all 50 states. Jumping on one of the insurance industry’s hottest trends, the company allows big-name brands to embed insurance products and services into their existing channels and checkout flows, allowing consumers to have convenient access to cover without having to search it out themselves.
This summer, it acquired the UK business Booking Protect, which allows ticket sellers and live event companies to embed ticket protection insurance into their ticket marketplace. Music lovers and festival-goers are used to gigs and events being cancelled because of illness or weather – and, particularly in the wake of the pandemic, many are willing to spend a few dollars more to add insurance cover at the time they book. Indeed, when the deal was announced, Angus McDonald called ticketing “a highly attractive vertical”.