Insurtech startup Finaeo announced today that it has raised $5.35 million CAD in funding, calling the raise an extension of its seed round.
The Toronto-based company closed on $2.25 million in 2017, bringing its total funding to date to $7.6 million. This funding round was led by FinTech focused VC, Luge Capital, with support from RGAX, “the transformation engine” of the Reinsurance Group of America, Rising Tide Fund, Inovia Capital, and angel investment led by AngelList partner, Alex Norman. The round also saw follow on investments from Impression Ventures and iGan Partners, both investing in Finaeo’s original seed round.
“How Amazon brings together the buying journey for different suppliers…we’re doing that same thing for insurance.”
CEO Aly Dhalla
Finaeo has created a front-end software platform for insurance advisors that helps with repetitive tasks, such as auto-filling applications. It also offers real-time application submission, adjudication, and application status of insurance claims. The company touts its product as “ground-breaking technology to help insurers digitize applications, create dynamic underwriting and automate legacy systems.” It focuses its product offering on the group benefits and the individual, voluntary insurance market.
Co-founder and CEO Aly Dhalla told BetaKit that the company’s mission is essentially to reduce the friction in the insurance industry and create easy ways for the policyholder (consumers), the agent, and the insurance companies to connect, giving them one system to operate on.
“Our biggest problem is customers not getting the experience they deserve, and everything we do is in service of trying to make a better customer experience,” Dhalla stated. “Think about how Amazon brings together the buying journey for different suppliers and makes it really simple for us to buy things, we’re doing that same thing for insurance.”
Finaeo, was founded in 2016 by Dhalla, as well as Donald Chu, now CCO. The company launched the beta of its digital assistant platform in early 2017, looking to provide insurance advisors with an AI-enabled digital assistant and sales coach informing advisors of upsell and cross-sell opportunities.