Car insurance start-up KOBA Insurance has raised $1 million in a recent funding round on crowdsource equity platform Birchal.
KOBA opened its crowdsource funding round earlier this week, meeting its minimum target of $200k within two hours and raising $525k from 160 investors in the first day.
The start-up reached its maximum target of $1 million in just five days from 358 investors.
Founded last year, KOBA offers comprehensive insurance split into two calculations: a driving premium and a fixed premium. Drivers pay a few cents per kilometre they drive, and a simple fixed cost to cover the car for events like fire, hail, theft, and third-party damage. Customers can measure their trips, costs, and policy information through the KOBA app.
The Melbourne-based start-up has already built its minimum value plan (MVP), signed a five-year term with an underwriting partner to act as an Authorised Representative, and is currently in beta testing. It expects to launch in-market later this year.
In a statement, KOBA said it will use this next round of funding to scale awareness among early adopters, continue to evolve the app experience, and bring on some key hires to round-out the team.
“We opened this crowdfund to invite early adopters, smart investors and potential customers to be part of our customer-centric insurance product; and did they come!” said Andrew Wong, founder of KOBA Insurance. “Welcome to each and every one of our new shareholders.”