Cachet closes seed round on €1.1m as it eyes expansion into Nordics

Estonia-based InsurTech Cachet has closed its seed round on €1.1m as it looks to expand its services to enter new markets such as Poland, the Nordics and the UK.

The funding round was led by, with contributions also coming from previous Cachet backers Techstars (in a follow-on investment), Barclays and Lemonade Stand. A number of angel investors also participated including Outrun Ventures founding partner Chris Adelsbach and Techstars’ Barclays London Accelerator managing director Kartik Varma.

Founded in 2018, the InsurTech provides drivers of ride-hailing platforms with an on-demand insurance policy which accounts for hours driven on platforms rather than needing them to pay a full monthly premium.

It achieves this by aggregating and enriching cross-market data from platforms to offer a unique view into gig workers’ actual work patterns to better offer them coverage.

Drivers in Estonia and Latvia for Uber, Bolt and Yandex use the insurance policies.

With the close of the round, Cachet is looking to enter the Nordics, Poland and the UK. It is also planning on releasing new services for urban mobility and vacation rental marketplaces.

The company’s website also claims it is launching delivery riders insurance and scooter insurance.

Cachet co-founder and CEO Hedi Mardisoo said, “The number of people working part-time or full-time for online platforms like Uber, Airbnb or Fiverr has more than doubled in the last three years. COVID-related economic slowdown is bound to accelerate it further.

“However, platform workers are currently underserved by financial services providers. This means that platform workers often have the choice of either buying expensive coverage or simply not working.”

Copyright © 2020 FinTech Global

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