Tallinn-based insurtech Cachet has raised fresh funding led by Nordic venture capital firm Spintop Ventures, bringing its total capital raised to around €11 million. Existing investors Truffle Capital and Icebreaker.vc also participated in the round, which marks Cachet’s first external investment since becoming profitable. The company designs insurance solutions for Europe’s platform economy, embedding flexible coverage into the systems of mobility and gig-economy platforms such as Bolt, Voi, Ryde and Turo across 16 European markets. Cachet will use the new capital to expand its product offering, grow its sales team, develop insurance solutions for emerging models such as employer-of-record platforms and autonomous mobility, and further roll out its risk-control engine, which uses live operational data to help partners prevent incidents and reduce losses.
Cachet is an InsurTech company founded in 2018 that develops insurance solutions for businesses operating in the platform economy. The company works with mobility, gig-economy and other platform businesses to design and integrate insurance products based on how vehicles, workers and services are used, while established insurers provide the underlying risk capacity. Cachet operates across 16 European markets and provides insurance and risk-management services to platform companies including Bolt, Voi, Ryde and Turo.
Hedi Mardisoo, CEO and co-founder of Cachet, said: We are building the adaptive insurance infrastructure for what comes next, from shared and autonomous vehicles to distributed work and AI liability. We’ve built a strong foothold, supporting over 50 platform economy partners to control their risk and reduce their losses. With this round, Cachet is ready to accelerate and become the insurance partner for these new markets.”
Lead-investor Spintop was joined by existing shareholders Icebreaker and Truffle in completing the funding. The new capital will fund product development and a larger sales team. Cachet is adapting its offer to new ways of working through platforms, including employer-of-record models. It is also building support for autonomous mobility as it begins to appear in Europe.
Erik Wenngren, Partner at Spintop Ventures, said: “There is a lot of noise right now from insurance start-ups burning capital to buy growth at high valuations. Cachet has taken the opposite route: build the infrastructure, reach profitability, then raise to go further and faster. What they have built so far, and their ambition for the next step, made them the right choice for our first investment in Estonia.”
Part of the investment will go into Cachet’s risk-control engine. The engine turns live operating data into guidance partners can act on while a policy is running, with the aim of preventing incidents rather than only paying for them. The approach was first proven in the Nordics and will now be rolled out to further European markets.
Read the orginal article: https://arcticstartup.com/cachet-raises-e11-million/
