London-based insurtech firm Premfina will use the funding to increase its global footprint.
PremFinn, an insurtech company which increases access to insurance by providing financing options for the purchase of insurance premiums, has raised £27m in equity funding and a debt facility.
Rakuten Capital led the financing and was joined by global investors Thomvest Ventures, Emery Capital, Rubicon Venture Capital, Talis Capital and the company’s founder.
PremFina is the first premium finance company in the UK to receive venture funding, with the equity portion of round more than three times oversubscribed.
The investment will be used to accelerate PremFina’s UK operations to meet a high demand for its financing solution among insurance brokers and support international expansion.
“The participation of outstanding investors from Toronto to Tokyo in our oversubscribed round highlights the vast opportunity ahead for PremFina,” said Bundeep Singh Rangar, CEO and founder of PremFina, who invested in 17% of the equity portion alongside the institutional investors. “Our new investors bring great strategic value and priceless global financial relationships.”
“Premium financing is an industry that’s been crying out for innovation. The incumbents have remained largely unchallenged due to age-old barriers to entry, such as the lack of funding for insurance start-ups, costs and time of regulatory compliance and significant investment in technological capability needed to meaningfully enter the market,” Rangar added.
“Consequently, insurtech has lagged behind other areas of fintech in terms of innovation. PremFina has overcome these barriers and is now poised for growth.”
Oskar Mielczarek de la Miel, managing partner at Rakuten Capital, said: “Rakuten sees outstanding growth potential in PremFina’s business model of promoting insurance inclusion and providing access to affordable insurance.
“We are excited to support the growth of PremFina’s innovative business in the UK and internationally.”