Cover Genius Becomes Double Unicorn With $143M Raise
Synopsis
The Australian insurance technology platform has surpassed a $2 billion valuation following fresh funding from Vista Credit Partners.
Insurance technology company Cover Genius raised an additional $143 million in funding that has resulted in a valuation of over $2 billion, catapulting the business to become one of the newest privately-owned double unicorns in Australia.
The investment will be used for furthering the business' technology platform, its artificial intelligence capabilities and for growing internationally, with Vista Credit Partners the transaction.
This latest capital raise consists of $100 million and a further $43 million secondary sale, and on the back of that, it is reported that the transaction is worth $143 million.
The transaction brings Cover Genius to a valuation of over $2 billion (compared with the $1.9 billion that it was previously worth), with investment being led by Vista Credit Partners.
Launched in Sydney in 2014, Cover Genius was designed to allow businesses to sell insurance products to customers through their digital journeys in areas such as bookings for travel, e-commerce retail and financial services.
The business now works with over 200 enterprise partners and more than 50 insurance carriers that have made embedded insurance available in over 60 countries globally.
Growth Supported by Expanding Global Network
As a result, the business claims that revenue has increased by 50% year on year and it is now at $3bn in gross written premiums that have been purchased through the business website, having gained some of the world's most trusted brand partners such as Uber, Booking.com, Klarna, Revolut, eBay and many more, that operate throughout the USA, North America, Europe, Asia Pacific and Latin America.
The investment will go towards continued development of the business' enterprise integrations and platform infrastructure, claims systems powered by AI and its claims work flows, states the chief executive and co-founder, Gus McDonald.
Embedded Insurance Draws Investor Interest
Investor appetite for embedded insurance is now rising as insurance has been integrated into on-line sales that originate from both retailers, financial companies and those that offer travel related services.
Global gross written premiums are expected to grow from $13 billion this year to more than $70 billion by 2030 according to The Boston Consulting Group's (BCG) Embedded Insurance Report.
The raise comes hot off the heels of Cover Genius' $80 million Series E funding round which took place earlier this year and in its latest announcement, the business states that since its launch it has secured more than $340 million in funding, further highlighting sustained investor appetite for insurtech firms globally for e-commerce.
Source: Smart Company
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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