Honey Insurance coverage has efficiently accomplished a $108 million funding spherical, the most important Collection A ever raised in Australia. This can be a important 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 one of the best on the worldwide stage, and positions Honey Insurance coverage as a robust challenger to the native residence insurance coverage oligopoly.

The spherical was led by Gallatin Level Capital, a non-public funding agency with US$5.0 billion belongings beneath 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 various insurance coverage firm and insurance coverage sector investments globally.

Reworking Dwelling Insurance coverage with Good Expertise

Honey is a digital home-insurance supplier the place the ‘no-hassle’ buy course of that may accomplished in lower than three minutes through the use of combining public home data, satellite tv for pc information, and synthetic intelligence to estimate rebuild prices.

Honey additionally provides prospects expertise and companies that assist to eradicate the ~50% of avoidable accidents that occur to properties. For example, Honey provides qualifying prospects a complimentary good residence sensor package to watch dangers similar to fireplace, water leaks, and intrusion. By serving to to stop incidents and providing proactive safety, Honey is reshaping the insurance coverage panorama and serving to Australians to remain safer, which in the end reduces the price of insurance coverage and creates a win-win.

Honey’s strategy to honest and constant pricing, together with it’s easy product design, has led to fifteen unique partnerships over the previous two years with corporations similar to Metricon, AGL, and Financial institution of Queensland.

Honey Insurance coverage Founder and CEO Richard Joffe (pictured) stated, “Honey Insurance coverage is delighted to welcome our new companions, who will give us the firepower required over the subsequent 18 months to triple revenues, flip worthwhile, and double headcount to over 200 individuals. The funding will enable us to additional put money into our award-winning product design by making Honey a really seamless expertise from buy to say. The calibre of our buyers underscores the distinctive alternative we now have to remodel the Australian market, which for too lengthy has been uncompetitive and missing in innovation.

“We’re additionally grateful for our partnership with RACQ beneath the management of David Carter. They’ve stood by us by means of 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 stated, “As a tech-enabled insurance coverage firm, we’re customer-obsessed, which has led to a Internet Promoter Rating of 92 which is the best in Australia, and stems from our need to ‘wow’ prospects with each engagement. In truth, we had been not too long ago named because the sixth quickest rising expertise firm in Australia, which is sort of an achievement for a corporation that was solely launched in June 2021 with fewer than twenty workers.”

Honey Insurance coverage Chair and former Foxtel and Information Company CEO Peter Tonagh stated, “Australia’s insurance coverage {industry} has one of many lowest ranges of funding into innovation relative to revenues on this planet, and we’re out to vary that.

“We’re leveraging among the most modern expertise and information platforms globally to raised shield essentially the most worthwhile 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 workforce, spectacular progress, and modern 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 nicely overdue within the Australian owners insurance coverage {industry}, and we’re excited to be supporting their journey.”