London-based Bought By Many, an insurtech startup that uses social media and search data to sell insurance, has closed a £7.5 million Series A round. It was led by Octopus Ventures, with Munich Re/HSB Ventures participating, as well as existing investors.
Bought By Many has developed a proposition enabling individuals with specific insurance needs to get better insurance offers from existing providers through collective buying power. Examples include pet insurance for rare breeds and travel insurance for people with medical conditions.
By analysing more than 550 million rows of search data and responding to specific customer needs, the company has attracted a membership of over 250,000 users and is enjoying year-on-year revenue growth of over 100 percent.
The investment will enable the launch, in early 2017, of a new range of Bought By Many-branded insurance products that will leverage its mobile-first technology platform. The products have been co-created using customer feedback, including almost 40,000 comments made on social media. In addition, Bought By Many will develop its distribution relationships with third-party insurers, both in the UK and internationally, and continue to provide impartial guidance on the best cover.
“This commercial agreement and investment marks another important milestone in our journey to transform the customer experience of insurance," said Steven Mendel, co-founder and CEO of Bought By Many in a statement. "In partnership with Munich Re, we can now create a full stack insurance proposition, satisfying the unmet customer needs revealed by both our data analytics and ongoing conversation with our 250,000 members.”
“I am delighted Octopus is leading this round," said Malcolm Ferguson of Octopus Ventures adds. "Bought By Many’s innovative distribution model and technology platform, combined with their exceptional traction with customers and world-class team, puts them among the world’s leading insurtech start-ups. The commercial agreement with Munich Re promises to super-charge this.”
Read more: Private Equity Wire (Press release)