For many companies selling auxiliary services or products (think insurance), the biggest problem with selling online is that they surface the offering at the right moment on their customer’s purchase journey.
With increasingly moving online shopping, companies that enable this by connecting service providers with product distributors understand that interest is growing from both customers and investors. One such company, Singapore-based Bolttech, which acts as connective tissue between insurers, distributors and target customers, said it closed its $147 million Series C round on Wednesday at a $2.1 billion valuation.
The news is led by the Dragon Fund, with participation from Baillie Gifford, Generali and other investors, starting at the end of around $100 million, six months after the company disclosed its first ending of Series C. Japanese conglomerate Sumitomo Corporation and Portuguese investment company Iberis Capital are among those investing in new tranches.
Founded in 2020 by Eric Gewirtzman and insurance veteran Rob Schimek, Bolltech specializes in embedded insurance. It offers insurance or protection products integrated into the customer purchasing experience. The company has grown rapidly with its B2B2C approach, rapidly raising funds for hundreds of millions of people, and says it currently connects around 700 distribution partners and more than 230 insurance companies, covering more than 6,500 products worldwide.
As part of Series C, Bolttech is pioneering its joint venture with Sumitomo, offering embedded insurance products and comprehensive “end-to-end services” to its Asian partners.
The startup will use fresh cash to enhance R&D capabilities and improve its insurance technology, particularly in areas such as data analytics and AI. The funds will also be used to expand further in Africa and North America.
We noticed that there was no significant rise in the number of distribution partners and insurance companies compared to the numbers we shared when raising Series B three years ago, but the company said it had risen to about $60 billion a year as of April this year, up from about $55 billion in May 2023.
Since the pandemic and insurance companies have tried to adapt to changing consumer habits, many embedded Insurtech startups have emerged, including Qover, Neat and Synctera, as more shopping has moved online.
But Bolttech says it competes with both traditional insurers and a handful of technology-focused players. “Sometimes, competition simply takes a ‘do-it-yourself’ approach, with potential partners choosing to build solutions within the company. However, in a world with increasing protection gaps, we often talk about “joint” (joint competition).
Bolttech’s investor base includes insurers such as Japan’s Tokio Marine and MetLife, and partners with key names such as Allianz, Apple, Axa, Liberty Mutual, Orange, Progressive, Lazada, Samsung and Home Credit.
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