KOBA, a pay-as-your-drive car insurance start-up that recently took home an Excellence in Insurtech award, has launched a second crowdsource funding round.
Last year, KOBA raised $1 million in its funding round on crowdsource equity platform Birchal. Now, it partnered with Birchal again to launch its second funding round that enables new and seasoned investors to join its cap table.
KOBA founder Andrew Wong said the KOBA team is thrilled to team up with Birchal again as crowdfunding grows exponentially.
“Our last raise was fully subscribed in just five days, reaching our maximum of $1M on the Birchal platform,” he said. “We were overwhelmed by the support and grateful to our 358 shareholders. So, we're excited to welcome everyone in again – our shareholders, customers, EOIs, and early adopters – to the cap table.”
The expression of interest (EOI) phase opened on July 26, 2022.
Read more: Koba Insurance takes home insurtech award
The funds raised so far enabled KOBA to launch its connected pay-per-kilometre car insurance product across Australia and grow its customer base by 70% month-on-month, with drivers paying from 3¢ per kilometre they drive.
Unlike one-off, annual traditional insurance premiums, drivers get the same type of comprehensive coverage, but only pay a few cents per kilometre they drive. Therefore, when the car is parked and not at risk of collision, a small monthly premium covers it from fire, theft, hail, and third-party damage.
“With an increase in working from home, people are driving much less while still paying higher premiums based on their usage pre-COVID. And the rising cost of petrol, food and general cost of living means people are constantly looking for ways to save,” Wong said. “KOBA provides a user-based alternative and is part of the new breed of insurance companies using data to build more customer-centric insurance solutions. If you drive less, you'll pay less for car insurance.”