Flitter, a Parisian insurtech startup specialising in pay-by-mile car insurance, has raised €3.5 million in a Seed funding round. The new investment is aimed at helping the company make new key hires and doubling the team size to 40.
The round was lead by Swiss insurer Helvetia via the Helvetia Venture Fund, and saw participation from Frenchfounders fund, former Sarenza CEO Stéphane Treppoz, Optimind founder Christophe Eberlé, Laurent Ritter, co-founder of Voodoo, and Sorare co-founder Adrien Montfort.
The company raised a Pre-Seed round of €2.5 million in early 2022 and says that with the new investment earmarked for growth, it can achieve profitability in 2024.
A necessary evil
In contrast to the necessary evil for those who drive that is the traditional model of auto insurance, one based on a variety of factors including your occupation, the make and model of your vehicle, your age, your driving history, and crucially, in the case of Flitter, your annual mileage.
Flitter is addressing approximately half of all French drivers that add less than 12,000 kilometres per year to the odometer. For these drivers, or alternatively stated, part-time drivers, paying the same rate as full-time drivers simply doesn’t make sense.
In offering a pay-as-you-go insurance plan, the startup says that those who’ve chosen to take advantage of alternative mobility options and/or simply drive less, can save up to 50 percent per year, the average is 30 percent, when it comes to their automobile insurance.
In so much, Flitter says that since opening its doors of operations 18 months prior, it’s attracted some 30,000 customers, and is taking its tech offer one step further with a recently introduced solution that plugs directly into connected vehicles with embedded communications and allows for an automated reporting of mileage.
On the investment, Helvetia Venture Fund partner Michael Wieser commented:
“Car insurance is a €150 billion market in Europe, but few new players have positioned themselves to innovate against traditional incumbents, and none have managed to build a profitable model.
“Flitter’s model is well-positioned to succeed in this challenge and become one of the first insurtechs to achieve profitability while maintaining sustained growth”
Lead image: Flitter team. Photo: Adam Morton