Flitter, a Paris-based InsurTech startup, has successfully completed a €3.5m seed funding round, positioning itself for significant expansion.
The company, known for its innovative pay-by-mile car insurance, is gearing up to enhance its operations and achieve profitability by the year 2024, according to a report from tech.eu.
The fresh capital was injected by a consortium of investors, headlined by Swiss insurer Helvetia through the Helvetia Venture Fund. Contributions also came from the Frenchfounders fund, notable individual investors including former Sarenza CEO Stéphane Treppoz, Optimind founder Christophe Eberlé, Laurent Ritter, co-founder of Voodoo, and Sorare co-founder Adrien Montfort.
At its core, Flitter is revolutionising the auto insurance market by offering a pay-by-mile insurance service. This model caters to the nearly half of French drivers who clock less than 12,000 kilometres annually. By only charging for the miles driven, Flitter provides a financially sensible alternative to traditional insurance plans, particularly benefiting part-time drivers.
With the latest round of funding, Flitter plans to double its workforce to 40 employees, which is crucial to its strategic goal of scaling operations and reaching profitability within the next year.
Since launching 18 months ago, Flitter has made significant strides, amassing around 30,000 customers. The startup has also introduced a pioneering solution that syncs with connected vehicles, offering automated mileage reporting, further enhancing their user-friendly insurance services.
Helvetia Venture Fund partner Michael Wieser lauded Flitter’s approach, emphasizing the potential within the European car insurance market valued at €150bn. Wieser remarked, “Car insurance is a €150 billion market in Europe, but few new players have positioned themselves to innovate against traditional incumbents, and none have managed to build a profitable model. Flitter’s model is well-positioned to succeed in this challenge and become one of the first insurtechs to achieve profitability while maintaining sustained growth.”
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