Cuvva, an app-based platform which allows users to buy pay-as-you-drive car insurance, has secured £15 million in funding to expand and disrupt the market. The Series A investment round was led by RTP Global, Breega and Digital Horizon, who were joined by seed investors LocalGlobe, Techstars Ventures, Tekton and Seedcamp.
The London-based startup plans to use the proceeds of the round to grow its 80-strong team. Over the next 18 months it expects to double in size.
“The way insurance is sold hasn’t kept up with the way people live their lives now,” said founder Freddy Macnamara. “I started Cuvva when I couldn’t find flexible insurance to help me share my car. Four years on from launch we are still discovering how big the problem we are solving really is.
“We’re now selling 3% of all UK motor insurance policies but we’ve got so much further to go. Cuvva is going to be the place where you buy all your insurance, all through our mobile app.”
Cuvva’s Series A funding comes as the company prepares to launch a pay-monthly insurance product for the first time. The startup claims that the new product could reduce average annual bills for car owners significantly by cutting out all middlemen including brokers and comparison websites.
Anton Inshutin, managing partner at RTP Global, added:
“The insurance industry across Europe is ready for a fresh approach. The UK has a long history of initiating change in the way that insurance is sold and Cuvva has devised a product that has incredible appeal for a new generation of car owners and borrowers. We are thrilled to be able to begin this journey to build a whole new way of buying insurance with Freddy and the team.”