The word from UK based insurtech Fruga;
Manchester insurtech company, Fruga, has agreed terms on a £1 million first institutionally backed funding round from venture capital firms Haatch and PXN. The milestone follows the founders’ completion of the Exchange accelerator programme at Campfield, where the business accessed investment-readiness support and built a wider network of advisors and contacts.
Fruga is the first business to bring open banking and direct savings into the insurance sector, linking rewards generated through non-insurance activity, such as everyday retail spending, with tangible savings for policyholders.
Working with insurers, Fruga enables customers to convert rewards from everyday spending into ‘insurance credits’, which can then be used to reduce the cost of their insurance. The model offers insurers a new way to reward and retain customers, while enabling policyholders to reduce their insurance costs through spending they would already be doing. By working directly with insurers, Fruga can also bring the proposition to established customer bases at scale.
Fruga’s differentiated proposition and growing commercial traction helped to build early investor confidence. As the fundraising progressed, Fruga signed contracts and secured partnerships with major insurers, with two due to go live with the technology later in 2026. The business also held discussions with institutional venture capital firms across the UK, Europe, and the United States before agreeing the £1 million round with Haatch and PXN.
The funding will primarily support recruitment, including key operational hires, alongside further development of Fruga’s existing technology as the business prepares to deliver its growing pipeline of insurer partnerships and continues to embed open-banking technology deeper into the insurance industry, creating value for both insurers and customers.
The business’ growth to date has been supported through the Exchange accelerator programme at Campfield, a major technology, media, and creative workspace campus in St. John’s district in Manchester. Fruga joined Exchange in 2025 at minimum viable product stage, with no customers, market traction, or external investment, before progressing from Exchange’s Start-up Cohort then onto the Growth Cohort as the business began securing commercial interest.
Through Exchange, Fruga developed a wider network of advisers and banking contacts, including a strong relationship with HSBC Innovation Banking, which supported McCarthy with access to networks and opportunities as well as providing banking services and ongoing support around the fundraise.
McCarthy is now becoming a founder-in-residence at Campfield to support other businesses going through the same early stages of growth.
Rich Jones, head of Exchange at Campfield, said: “Fruga is a great example of what can happen when a great idea is matched with the commercial discipline needed to thrive. Ross joined Exchange with an early-stage product and a clear view of a problem in insurance. Since then, he has tested that proposition in the market and turned that idea into something major insurers and investors are prepared to back.
“Innovation only creates value if founders can turn it into a scalable business. Fruga’s journey from an early-stage product to agreeing £1 million of investment shows what can happen when a strong idea is combined with the right support and connections.”
Ross McCarthy, founder and director of Fruga, added: “Until now, we’ve built Fruga entirely with our own capital, but when major insurers started taking an interest, it became clear that we needed the team and greater resources behind us to deliver at that level.
“We already have a great product, and we’re seeing real demand for what we’re building from Campfield. This investment allows us to grow the team around it and take Fruga to a much bigger audience. Our ambition is for this to become an everyday part of how people save money on insurance, with the potential to reach millions of customers through the insurers we work with.”
The funding round closed on 30th September, with Fruga now beginning its next phase of recruitment and growth.
Exchange is an award-winning independent accelerator programme supporting early-stage and scaling businesses in the technology, media, and creative industries. Since launch, Exchange has supported more than 1,149 individuals across over 357 businesses, with alumni raising more than £85m and creating 1,300 jobs for the Manchester region.
To find out more about Exchange at Department, visit: https://exchangeprogramme.uk
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