Insurance start-up Cover Genius boosts valuation to $1 billion

Insurance start-up Cover Genius boosts valuation to $1 billion | Insurance Business Australia

Insurance start-up Cover Genius boosts valuation to $1 billion

Australian insurance start-up Cover Genius has boosted its valuation to AU$1 billion after its latest fundraising round of $100 million.

With the help of investors such as G Squared and Japanese insurer Sompo Holdings Inc., Cover Genius raised around seven times more than it raised last year, according to a Bloomberg report.

The latest fundraising is among the biggest by an Australian fintech company, after Airwallex Cayman Ltd’s $200 million raise this month. G Squared, which counts Lyft Inc., 23andMe, Inc., and Spotify Technology SA in its portfolio, also invested in that funding round.

Cover Genius stated that it will use the latest funding to expand in different markets, including the US, and double its staff to 400 by the end of 2022.

Read more: Cover Genius CEO on the future of bank-embedded insurance

Cover Genius was founded by Angus McDonald and his university friend, Chris Bayley, in 2014. It started out selling travel insurance then expanded into property, shipping, and e-commerce warranties through its growing network of partners. McDonald was an executive at Yahoo, while Bayley was a business development manager at Google Australia.

McDonald confirmed in a previous statement that the insurance start-up has already signed with 20 new partners over the last six months around the world, including retailers EBay Inc. and Wayfair Inc., travel booking website Skyscanner Ltd, and Intuit Inc., which provides software like TurboTax and QuickBooks to small businesses.