Danish insurtech company Penni.io has raised EUR 5.7 million in an investment led by Seed Capital. The funds will be used to boost European growth and is based on a fivefold revenue increase in 2020.
Penni.io provides an insurtech solution, Penni Connect, by which insurance companies can easily sell insurance online through partners such as car dealers, travel providers and banks. In 2020, Penni.io grew from 16 to 28 employees and, as of April 2021, the company now has 37 employees. At the same time, Penni.io has landed several of the world’s largest insurance companies as customers. The business model is Software-as-a-Service, SaaS, and the monthly subscription revenue (“MRR”) has increased fivefold in 2020.
The two founders, Esben Toftdahl Nielsen, Commercial Director, and Jeppe Klausen, CEO, commented:
Jeppe Klausen, CEO:
‘We want to accelerate the online sales of insurance with our customers and establish ourselves in new countries in Europe. We must create further growth in the Nordic region and expand our activities in France, where we already have established a strong position. But we must also open up new countries. To accomplish all of that, we need at least 20 new employees in 2021. So we look forward to an exciting year.’
Esben Toftdahl Nielsen, Commercial Director:
‘The entire insurance market is facing disruption and Penni.io represents the future. Thus far, insurance companies have focussed on personal sales, but the consumers of the future think digitally and shop online, and insurance is typically purchased together with a car, a house, a membership or in connection with a life event.’
Penni.io describes their market as a ‘blue ocean’, which means that they don’t have many competitors, and the market is estimated to be worth USD 3 trillion. Currently, the alternative for insurance companies is to develop their own solutions. Penni Connect, however, is a standard solution that solves the needs of insurance companies and can be implemented very quickly.
Peter Egehoved, General Partner at Seed Capital, says:
‘We have been looking for the right investment in insurance tech for a long time, which we believe is a natural extension of the fintech wave. In Penni.io we have found the perfect match as they help established insurance companies execute a transformation towards online distribution. In addition, Penni.io has performed at a level and a speed that we rarely see in Denmark. We look forward to helping them on their journey to become the next Danish tech success, as we have done with Trustpilot, Vivino, Templafy and many others.
‘Insurance is a market that will change beyond recognition during the next ten years, and the established players are therefore searching high and low for absolutely the best products to ensure that they remain attractive. As Penni.io consists of many experienced people from the insurance industry and the start-up world, we are sure that it is the right investment for a venture fund like ours.’
Thomas Krogh Jensen, CEO of Copenhagen Fintech, is pleased that insurtech will receive a larger investment:
‘At Copenhagen Fintech, we welcome the largest investment in Insurtech in Denmark to date. I see a huge potential in this area in line with what we have experienced in recent years in the more bank-oriented fintech, which has produced an exponential increase in innovation and new businesses.’