Auto insurance startup pulls in £750k to support next growth phase

Car insurance platform honcho has pulled in a £750,000 investment to support the company’s national product launch.

The funds were supplied by UK private equity firm Maven Equity Partners.

Funds were split by £322,500 through Maven VCT’s North East Development Capital Fund, £322,500 through the European Regional Development Fund and £105,000 from the Finance Durham Fund, established by Durham County Council.

This fresh capital injection will support honcho’s next growth phase which will see it launch the product nationally, add new insurance product lines and make enhancements to its platform. Following the round close, the company hopes to add 10 new jobs over the next 12-month period – this will bring its staff numbers to 15.

UK-based honcho is a price comparison website for motor insurance, which aims to reduce prices through its ‘reverse auction’ marketplace. The system works by insurance companies bidding for business with consumers, to ensure quotes are competitive.

Gavin Sewell, CEO of honcho said “Our growth plans are already well advanced as we look beyond our imminent full launch into the car insurance sector and into our next markets. These will include bringing honcho’s disruption to the home and contents insurance market as well as to those of van and learner driver insurance.

“Our commercial team are already in negotiation with a number of potential market participants, including major household names, who see the value that honcho can bring to their businesses. This investment accelerates our next phase, and our talented team can’t wait to get started.”

The firm raised £850,000 last year through a crowdfunding campaign which surpassed its initial goal by £200,000. Capital from the round was used to support the launch of its insurance app which came later in the year.

Copyright © 2019 FinTech Global

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