Investment defies tech slowdown as insurtech achieves 107% year-over-year (YOY) revenue growth and protects more than 30 million customers worldwide
NEW YORK, May 15, 2024 – Cover Genius, the leading insurtech for embedded protection, today announced its $80 million Series E funding round. Despite the tech funding slowdown, the round was led by Spark Capital with support from existing investors, including Dawn Capital, King River Capital and G Squared.
This funding follows a remarkable year of sustained growth and expansion for Cover Genius and its award-winning global distribution platform, XCover. In 2023, the company achieved a remarkable 107% year-on-year growth and maintained an impressive 145% Net Revenue Retention by partnering with some of the world’s largest digital businesses to provide embedded protection to over 30 million customers worldwide.
“The display of trust from our investors highlights the resilience of our embedded business model and potential for growth, particularly as we strategically focus on key markets like travel, retail, ticketing, and logistics,” said Angus McDonald, CEO and co-founder of Cover Genius. “Our collaborations with well-known brands, including Uber, Ryanair, and eBay, demonstrate our unique ability to create customer-centric protection solutions backed by technology, policy innovation, and industry expertise.”
Spark Capital, a US-based VC firm recognized for partnering with category-defining technology companies like Twitter, Coinbase, and Slack, spearheaded the Series E. In addition, showing their continued support for the business, existing investors Dawn Capital, King River Capital and G Squared also participated. These varied investments underscore Cover Genius’ position as a global frontrunner in the insurtech industry.
“Cover Genius’ technology platform, global presence and focus on digital claims initially caught our attention years ago,” said James Kuklinski, General Partner at Spark Capital. “By tackling common insurance obstacles such as limited market coverage, lengthy claims processes, and a lack of product diversity, the company has evolved into a category leader. We couldn’t be more excited to partner with the company as they continue driving more value to partners and a best-in-class consumer experience.”
The fresh capital will allow Cover Genius to expedite its growth plans and continue to invest in cutting-edge technology, including improved digital insurance distribution solutions, deploying Artificial Intelligence (AI) claims handling and expanding the protection solutions available on the platform. The improved tech capabilities and expansion of solutions will support new and existing partnerships, driving the creation of distinct solutions that offer innovative ways for digital companies to distribute protection products, such as Cancel For Any Reason (CFAR), Delay Valet (payment for travel inconveniences), Protection Pocket, and other types of protection.
Since its inception in 2014, Cover Genius has advanced insurance distribution through its award-winning global distribution platform, XCover. By leveraging AI and data-driven insights, the platform enables partners to provide a wide range of insurance and other types of protection across various market segments. With a focus on customization, Cover Genius offers both bundled and standalone solutions, resulting in increased conversion rates and enhanced revenues for global businesses. By delivering highly relevant protection options at the most suitable prices and times, the company ensures customer satisfaction backed by an industry-leading post-claims Net Promoter Score (NPS).
