Walnut, an innovative company in the insurance distribution sector, has successfully closed a $4.6m funding round.
The funding round was led by NAventures, the corporate venture capital arm of National Bank of Canada, with additional participation from TELUS Global Ventures, Diagram Ventures, Portage, and Highline Beta, according to FF News.
This investment marks a significant milestone for Walnut, as it looks to accelerate its efforts to modernise and streamline the insurance distribution landscape.
Walnut’s platform leverages cutting-edge technology to embed insurance products directly into the services of enterprise businesses and financial institutions.
By doing so, the company reduces marketing costs and drives insurance distribution through strategic, partner-driven channels. This approach supports a more sustainable distribution model for insurers while ensuring that consumers receive tailored insurance products at the right time and place.
The newly secured capital will be used to enhance Walnut’s technology platform, expand its engineering team, and form new partnerships. The company also aims to enter new markets, capitalising on the growing opportunity to deploy replicable embedded insurance solutions effectively.
Diagram Ventures recently expanded its strategy to include external investments, with Walnut being one of the first companies to benefit from this approach. This move highlights the confidence that Diagram Ventures has in Walnut’s potential to revolutionise the insurance industry.
Walnut’s co-founder and CPO, Adrien Niblock, emphasised the company’s vision, “The insurance industry has yet to complete its digital transformation, with many insurers and brokers still operating in traditional, non-digital fashions. We aim to leapfrog traditional digitisation and support a modern API-enabled embedded distribution strategy.”
François Lafortune, CEO of Diagram Ventures, praised Walnut’s approach, stating, “Walnut’s unique approach to embedded insurance distribution aligns with our vision of supporting transformative technologies that have the potential to drive significant industry change.”
NAventures principal, James Povitz, added, “We are proud to support Walnut in their next phase of growth. Our ongoing investment and partnership reflect our confidence in their vision and execution.”
In previous investment rounds, Walnut had already raised significant funding, further solidifying its position as a leader in the embedded insurance space.
Copyright © 2024 InsurTech Analyst
