Diesta, a B2B SaaS company revolutionising payment operations for the insurance industry, has announced the successful close of a €3.5 million seed funding round. The round was led by FinTech Collective, a New York-based VC firm, with participation from Commerce Ventures and existing investors Restive Ventures and SixThirty. This latest investment follows Diesta’s €1.8 million pre-seed round secured just last year, demonstrating strong momentum as the company scales its platform across the UK, Europe, and the US.
The insurance industry, which processes more than $1.75 trillion in commercial premiums annually, remains highly fragmented and reliant on outdated, manual processes. Each insurance policy generates 7x its value in premium payments given the convoluted flows of funds, and every year the sector loses an estimated $32 billion due to inefficiencies in premium payment allocation. While digitisation is slowly making policyholder and claims payments easier, this process does not extend to B2B payments within the insurance value chain. The problem is enormous and touches all parts of the industry.
Co-Founder and CEO Julian Schoemig, who announced the raise at the ITC Vegas conference, remarked: “We’re addressing one of the insurance industry’s biggest back-office challenges—premium payments. We’ve shown that we can bring digital payment innovation to a space long considered an unsolvable burden. By working with everyone from nimble insurtechs to some of the largest brokers and MGAs in the London market, we know that the Diesta platform can deliver immense value for entities of all sizes. We are thrilled to have the backing of such high-profile investors as partners in our growth journey.”
Diesta’s technology is designed to be the financial operations backbone for the insurance industry. By wrapping various payment and premium data sources into a seamless platform, Diesta brings enormous efficiency and new revenue opportunities to an industry stuck in manual payment processes. Most recently, Diesta has rapidly gained traction in the London market, with a client base that includes both emerging insurtechs and large enterprises with revenues exceeding $1 billion.
“The status quo surrounding payment processing in the insurance industry is stuck in the 20th century and cannot last”, added Toby Triebel, Partner at FinTech Collective. “We are thrilled to partner with the Diesta team on their mission to reimagine this industry from the ground up. Their vision to eliminate premium processing time and costs, offering real-time payments, reconciliation, and treasury management has resonated strongly since the first meeting.”
With this new round of funding, Diesta plans to accelerate its expansion across new geographies and insurance classes, focusing on growing its presence in the UK, Europe, and the US. The company will also invest in further enhancing its platform, offering even more advanced functionality to insurance finance teams through AI-driven integrations and embedded fintech partnerships. The funding will support Diesta’s aspiration to become the go-to payment operations layer for the insurance sector, helping to drive digital transformation in one of the world’s most antiquated markets.
Read the orginal article: https://www.eu-startups.com/2024/10/london-based-diesta-gets-e3-5-million-to-transform-the-way-insurance-companies-process-b2b-premium-payments/
