Honey Insurance coverage has efficiently accomplished a $108 million funding spherical, the biggest Sequence A ever raised in Australia. This can be a vital milestone achieved in an atmosphere the place the Australian expertise sector has skilled a >50% decline in enterprise capital investments in 2023 and the place the worldwide Insurtech panorama has seen a >70% discount in funding in the identical interval. This mega-round demonstrates that founding groups in Australia proceed to compete with the perfect on the worldwide stage, and positions Honey Insurance coverage as a powerful challenger to the native residence insurance coverage oligopoly.
The spherical was led by Gallatin Level Capital, a personal funding agency with US$5.0 billion belongings below administration, primarily based in Greenwich, Connecticut (USA). Gallatin Level Capital’s main funding focus is on monetary establishments, and funds managed by it have made a lot of insurance coverage firm and insurance coverage sector investments globally.
Remodeling Dwelling Insurance coverage with Sensible Expertise
Honey is a digital home-insurance supplier the place the ‘no-hassle’ buy course of that may accomplished in lower than three minutes by utilizing combining public home data, satellite tv for pc information, and synthetic intelligence to estimate rebuild prices.
Honey additionally affords clients expertise and companies that assist to remove the ~50% of avoidable accidents that occur to properties. For example, Honey affords qualifying clients a complimentary sensible residence sensor package to watch dangers corresponding to fireplace, water leaks, and intrusion. By serving to to forestall incidents and providing proactive safety, Honey is reshaping the insurance coverage panorama and serving to Australians to remain safer, which finally reduces the price of insurance coverage and creates a win-win.
Honey’s method to honest and constant pricing, together with it’s easy product design, has led to fifteen unique partnerships over the previous two years with firms corresponding to Metricon, AGL, and Financial institution of Queensland.
Honey Insurance coverage Founder and CEO Richard Joffe (pictured) mentioned, “Honey Insurance coverage is delighted to welcome our new companions, who will give us the firepower required over the following 18 months to triple revenues, flip worthwhile, and double headcount to over 200 folks. The funding will permit us to additional put money into our award-winning product design by making Honey a very seamless expertise from buy to say. The calibre of our buyers underscores the distinctive alternative we now have to rework the Australian market, which for too lengthy has been uncompetitive and missing in innovation.
“We’re additionally grateful for our partnership with RACQ below the management of David Carter. They’ve stood by us via all of the bumps within the highway, and their flexibility and long-term dedication is an instance of how startups and incumbents can drive industry-wide change.”
Angelo Azar, the COO for Honey mentioned, “As a tech-enabled insurance coverage firm, we’re customer-obsessed, which has led to a Internet Promoter Rating of 92 which is the very best in Australia, and stems from our need to ‘wow’ clients with each engagement. In truth, we had been lately named because the sixth quickest rising expertise firm in Australia, which is kind of an achievement for a corporation that was solely launched in June 2021 with fewer than twenty staff.”
Honey Insurance coverage Chair and former Foxtel and Information Company CEO Peter Tonagh mentioned, “Australia’s insurance coverage {industry} has one of many lowest ranges of funding into innovation relative to revenues on the planet, and we’re out to alter that.
“We’re leveraging a number of the most progressive expertise and information platforms globally to raised shield probably the most useful asset of most Australians – their properties.”
Lance Toler, Managing Director at Gallatin Level Capital, added, “The bar for us to enter a brand new market like Australia was very excessive, however the high quality of the founding crew, spectacular development, and progressive buyer options that Honey brings to the desk was a compelling mixture. We got here to the conclusion {that a} real challenger like Honey Insurance coverage is properly overdue within the Australian householders insurance coverage {industry}, and we’re excited to be supporting their journey.”
