Omocom, a Swedish startup that provides on-demand microinsurance for the circular economy, has raised €3.7 million in a round co-led by Inventure and Lisbon-based social impact fund Mustard Seed MAZE. Alma Mundi Insurtech Fund, Luminar, and some angels also participated.
The circular economy encourages sharing products that otherwise sit unused or get thrown away. Business models include peer-to-peer sharing, business to consumer rentals, and resale marketplaces. “We want to use insurance as a tool to drive sales on these circular platforms, thereby creating the conditions for products to be used more extensively and for a longer period,” says CEO Ola Lowden.
Traditional insurance is designed around ownership. In the context of the sharing economy, ‘on-demand microinsurance’ means the insurance is activated only while the items are being used.
Orson Stadler of Mustard Seed MAZE explains further: “By reducing the risk of transactions, omocom increases the likelihood of effectively changing consumption patterns and helps break the cycle of purchasing items for non-use.”
The insurtech startup was founded by Lowden, Emanuel Badehi Kullander and Tobias Mård in 2017. Working with researchers at Swedish universities, they developed algorithms that calculate real-time risk assessments digital platforms. The business finally launched last October and has about 15,000 customers, according to a press release.
The fresh funding will help the company grow in a few ways: develop the product, expand into new verticals, and enter new markets outside of the Nordics.
Photo: Co-founders Emanuel Badehi Kullander, Ola Lowden and Tobias Mård