The world of software for insurance brokers is big business – and if you don’t believe it, then look no further than UK firm PremFina.
The company managed to raise $36 million (approximately £27 million) during its first round of funding with serial entrepreneur and founder Bundeep Singh Rangar looking to expand the company.
According to Bloomberg
reports, the equity and debt investment was received in part by UK-based Draper Esprit Plc, which is backed by billionaire Tim Draper, as well as the venture capital arm of Rakuten Inc., based in Japan. The sources of the information asked not to be identified as the matter was deemed private, according to the newswire.
Other investors listed by the sources included Rubicon Venture Capital, based in New York and San Francisco; Emery Capital, based in Russia; Thomvest, which is led by Peter Thomson whose family controls Thomson Reuters; and Talis Capital, which was co-founded by Bob Finch, a former oil trader.
The sources added that Rangar will keep control of the firm and that further investment rounds may be made before the end of the year.
“Rakuten sees outstanding growth potential in PremFina’s business model of promoting insurance inclusion and providing access to affordable insurance,” Oskar Mielczarek de la Miel, managing partner at Rakuten Capital told Bloomberg. “We are excited to support the growth of PremFina’s innovative business in the UK and internationally.”
PremFina offers software used to connect brokers and their customers; as well as a loan facility so brokers can extend financing to clients. According to Rangar the operation works in a similar manner to the way in which Uber Technologies connects drivers and passengers – he once dubbed the start-up the “Uber of premium finance”.
“It’s a thumbs up for British innovation in insurance and finance,” said Bundeep Singh Rangar, CEO and founder of PremFina. "Our software is built with its global export in mind, something that will become especially important in a potential post-Brexit world. It’s no wonder then that investors from Tokyo to Toronto have backed our model for making insurance more affordable and promoting financial inclusion worldwide.”
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