Travel insurtech Koala raises €2m to accelerate its growth
by Startacus Admin
Koala, the innovative travel insurtech startup, secures investment to fuel its growth in Europe, expand its team and build additional travel protections.
Koala, the travel insurtech, announces the successful completion of a €2 million fundraising round led by its existing investor Insurtech Gateway and welcomes 3 new investors: Uneti Ventures, Slimmer AI and Sterling Oak.
This round will fuel Koala's growth in Europe, enabling it to continue growing its tech and sales teams, and building brand-new travel protections.
Innovating in travel insurance? Koala takes on the challenge
The travel insurance market is challenging to break into: products that traditionally require a lot of human operations, no subscription model, and distribution channels that have been locked up by the same insurers for years.
Add to this, Covid-19 that changed the expectations of travellers and distributors, who are now more than ever looking for simple, flexible solutions that allow them to book their travel with peace of mind. That's where Koala comes in.
Founded in 2018 by Antony Mechin, Léo Tordjman and Ugo Weyl, Koala builds modular travel protections from scratch, always with the same philosophy: remove exclusions, automate 100% of the operations and offer protections requiring no proof. To date, the startup has developed 2 unique products: a Cancellation for Any Reason (Koala Flex) and a Trip Disruption for Delays, Cancellations and Missed Connections (Koala Trip Disruption).
With Koala, travel agencies and operators can tailor their travel protection and offer their customers unparalleled protection coupled with an optimal customer experience that requires no proof or reasons.
"Covid-19 was a real eye-opener for the travel market but also for travel protections which showed many of their limitations with messy exclusions and very long reimbursement processes. Post-Covid, travel agencies and operators are more than ever looking for solutions to allow their users to travel with peace of mind. But traditional insurers have done very little to innovate since then, and that's where Koala comes into its own. All of our products are unique, automated and customizable to enable an unprecedented customer experience. And thanks to our data-driven approach, we enable our partners to generate much more revenue than with their current offers.” explained Léo Tordjman, co-founder of Koala.
Koala wants to become a European reference in travel protection
After years of development, Koala launched its full-scale commercialisation in early 2022 with over 30+ partnerships signed including some market references like Direct Ferries, Pelikan and Vola.
This B2B2C strategy bore fruit with more than 100,000 travellers protected by Koala in 2022. The startup, which has been profitable for several months, has big ambitions and is aiming to protect 500,000 travellers in 2023. The year has got off to a great start, by March Koala had already exceeded its 2022 figures.
The key to Koala's success: making its product so modular that it can continually optimise its selling price and protection details through data analysis, thereby increasing its partners’ revenue. Thanks to this data strategy, Koala is able to achieve conversion rates up to 2.5 times higher than the market average.
Marion Doucet, CPO of Koala added: "Unlike any other travel insurer, at Koala we continually A/B test our prices, protection details, visuals and even content. A traveller leaving last minute in the South of France and another one preparing their trip in 5 months for the United States does not have the same expectations or sensibility to protect themself, that's why our technical solution automatically adapts our product to the travellers. We are convinced that hyper-specification is a golden opportunity in the travel protection market".
Richard Chattock, CEO at Insurtech Gateway said: "Koala grew significantly in 2022. With their unique customer experience, they continually gain traction among travel providers in Europe. We have high hopes for Koala, we are excited to be a part of their journey and to support their vision for the future.”
The €2 million fundraising round will enable Koala to invest in data and machine learning to continue optimizing Koala pricing and protection details, in particular with the contribution of Slimmer AI, an AI-specialized venture studio. It will also allow the startup to create brand-new protections, continue growing its commercial team and fuel Koala’s growth.
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Tobin Capital continues to expand its portfolio by investing in pop-up marketplace Sook, the startup on a mission to revolutionise the high street.
Sodexo and L Marks open call for applications from innovative startups and scaleups to join their inaugural Sodexo Healthcare and Seniors Accelerator.
The lowdown on FuturePlus, the startup that's on a mission to make sustainability accessible, achievable and affordable for all businesses.
.jpg)
John McLachlan, author and co-founder of Monkey Puzzle Training & Consultancy examines the differences between action-oriented and reflective leaders and which approach is best.
The fitness app that's not just about physical fitness; GoJoe helps employers to engage, motivate and connect their people across all pillars of wellbeing.
Now in its fifth year, North West England water firm United Utilities opens call for Innovation Lab, its pioneering ideas incubation programme.
Not-for-profit OneTech has spunout from Capital Enterprise to expand its offering and continue its mission of creating a more equitable, diverse and supported startup ecosystem.
London-based startup Deep Render tackles the internet’s data and bandwidth challenges via its innovative AI-powered file compression technology.
The lowdown on Dublin-based startup and NUI Maynooth spin-out Neuromod Devices and its innovative evidence-based bimodal neuromodulation treatment for chronic tinnitus.
.jpg)
With the clear shift towards generative AI, Richard Hayes, search director at digital marketing agency Catalyst explores what it means for SEO...
Published on: 29th March 2023
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.
- Startup Sook Receives Investment from Tobin Capital 24th May 2023 Tobin Capital continues to expand its portfolio by investing in pop-up marketplace Sook, the startup on a mission to revolutionise the high street.
- L Marks Seeking Startups and Scaleups for Sodexo Healthcare and Seniors Accelerator 23rd May 2023 Sodexo and L Marks open call for applications from innovative startups and scaleups to join their inaugural Sodexo Healthcare and Seniors Accelerator.
- United Utilities Innovation Lab launches call-out for innovative ideas for fifth programme 18th May 2023 Now in its fifth year, North West England water firm United Utilities opens call for Innovation Lab, its pioneering ideas incubation programme.
- OneTech Spins Out from Capital Enterprise to Support Underserved Communities in Tech Across the UK 18th May 2023 Not-for-profit OneTech has spunout from Capital Enterprise to expand its offering and continue its mission of creating a more equitable, diverse and supported startup ecosystem.
