US$50m in Series C Funding raised by insurtech Novidea
Insurtech Novidea has raised US$50m in its latest round of funding, with investment led by Battery Ventures.
Novidea provides a cloud-based, data-driven platform designed to optimise the insurance policy and distribution lifecycle for insurers.
A significant step
The latest funding represents the single biggest investment in one round for Novidea, having only raised a total of $40m in three previous funding rounds. The $50m raised by Novidea is the first bout of funding it has received since May 2021.
Funding from Battery Ventures represents new investment in Novidea and was supplemented by Cross Creek, another first-time investor in the insurtech. Novidea’s pre-existing investors, Israel Growth Partners, KT Squared and JAL Ventures also provided funding in the latest round.
Rewarding growth
The $50m invested in Novidea comes after the company reported a 90% growth rate year-on-year in 2022, with a net revenue retention rate of 139%. 2022 also saw the insurtech expand its employee headcount in the regions it operates, including the US, UK and EMEA.
Furthermore, growth in Novidea’s overseas research and development team, investment in new service delivery infrastructure and an expansion of its leadership team have helped it garner the interest of new venture capitalists.
The insurtech says it will leverage new investment to try and increase its market share internationally, with funds being directed towards the development of its insurance platform, the fortification of its customer success infrastructure and the further expansion of its teams and offices in markets worldwide.
The rise of insurtechs
Investment in Novidea points to a wider growth in insurtech investment. Recently, Gallagher Re reported a 37.6% rise in insurtech funding in Q1 2023 despite a slump in large-scale funding rounds.
According to Novidea, continued investment in insurtechs is a result of a slow digital uptake in the insurance market, with legacy systems expensive to scale and providing only limited access to real-time management information.
Partner at Battery Ventures, Shiran Shalev, says: “While businesses globally adjust to dealing with a pronounced increase in risk—driven by geopolitical, economic and other events—the insurance industry has generally been underserved by technology relative to other sectors.
“Novidea has built a modern, comprehensive software suite that currently powers some of the world’s largest and most complex insurance groups, and we are excited to partner with them for their next phase of growth.”
Roi Agababa, CEO of Novidea, concludes: “Novidea has experienced unprecedented growth, driven by the demand in global markets to modernise the insurance distribution lifecycle and provide a better digital experience.
“We are thrilled to welcome Battery Ventures and Cross Creek as our newest partners in this round of funding, along with our existing investors. Through this transaction, Novidea will have the ability to expand our product suite, add further innovation to our platform and deliver a superior customer experience.”
