The UK-based insurtech, Vitesse PSP has secured US$26mn in capital in its latest Series B funding drive. The company’s technology currently serves as the backbone to the financial infrastructure that runs throughout the insurance value chain, as well as for many corporates who use Vitesse for faster, more cost-effective payments.
The insurtech’s liquidity and treasury management platform is built on top of a globally distributed payments network providing control and transparency as well as improved capital efficiency and additional investment returns for its customers.
Vitesse digital strategy in the insurtech ecosystem
The Series B funding round was led by Prime Ventures, with participation from Octopus Ventures and Hannover Digital Investments. The new funding will enable Vitesse to tap into the growing digitisation of the insurance market in Europe and the US.
Other investors included Octopus Ventures, which lead the 2020 Series A funding round and are one of Europe's largest and most active venture capital investors. Hannover Digital Investments also contributed via the corporate venture capital fund of HDI Group, one of Europe’s largest insurance companies.
Additional participants included existing angel investors such as Ron Kalifa, OBE, former Worldpay CEO and author of the Kalifa Review, and Shane Happach, CEO of Mollie, the Dutch payments unicorn.
Vitesse’s marketplace offerings in insurtech
According to reports, Vitesse currently serves several established blue-chip companies within the insurance sector. These include more than 70% of the insurers within the Lloyds of London market, supporting insurers to digitise their operations and develop exciting new “real-time” products like parametric covers.
The insurtech’s platform is also swiftly being adopted by neo-insurers such as BoughtByMany pet insurance.
A statement released by Vitesse revealed that proceeds from the round will be used to support and accelerate Vitesse's growth and continued global expansion programme across Europe and the US. Vitesse will continue to invest in its product offering and customer service, helping the firm to realise its vision of becoming the payment partner of choice for the insurance industry.
Vitesse investors and insurtech growth
Speaking about the funding round news, Phillip McGriskin, CEO of Vitesse explained, “We are thrilled to have our new investors on board. The Vitesse team has built an incredibly strong and highly regulated platform, supported by our own global payment network and treasury capability, and we have successfully shown the value of these assets to our fast-expanding customer base. We have strong ambitions to grow and to continue our success with a strong focus on the insurance market.
“Whilst Vitesse is already well-positioned in the insurance market, the sector sees over $4tn in claims settled annually and is only now adapting to more digitised ways of working, demonstrating an opportunity for Vitesse to support those looking for more integrated and efficient ways of managing liquidity and for greater capital efficiency.
McGriskin added, “In just over a year, we have increased payments value processed by 109% and the client funds under management by 127%, secured several significant new contracts and now, with the support of our new backers, we have even greater ambitions.”