LeoCare raises $18.1 million for its insurance products designed to fit in a mobile app
French startup LeoCare has raised a 15 million funding round. Felix Capital, Ventech and Daphni are participating in today's funding round. The company is selling a portfolio of insurance products with a focus on the signup process and user experience. You can control your insurance products from a mobile app.
Chances are you already pay for multiple insurance products. But when is the last time you checked your coverage and adjusted your contract? When people sign up to a new insurance product, they tend to set it and forget it.
That's why insurance companies don't invest a ton of money on mobile apps, control panels and user-facing features. LeoCare believes there's room for a player that does the opposite.
LeoCare can insure your home, your car, your motorbike and your smartphone. You can sign up from the company's website or install a mobile app. The company has tried to optimize the onboarding process with easy-to-understand questions and an indicator that tells you if you're going to pay a bit more or a lot more if you choose one option or another.
When you sign up, you get your insurance contract right away. This way, you can send it to a landlord a few minutes later. But LeoCare also helps you manage your contract later down the road. For instance, many LeoCare customers chose to lower their car insurance premiums during lockdown. You can also add another driver for a couple of weeks.
Behind the scenes, LeoCare acts as a managing general agent. The startup partners with several insurance companies and sells its insurance products under its own brand. The company currently charges 1 million in premiums per month and has 20,000 customers.
63% of contracts cover a car, 26% of contracts cover a home, 7% of contracts are for motorcyclists and 4% of contracts focus on smartphones. And LeoCare is growing rapidly with a current month-over-month growth rate of 38%.
Up next, the company wants to launch new features, such as a bot that lets you check the status of your case. LeoCare is also working on a feature that lets you receive a notification when you're driving and there are usually a lot of road accidents in the area.
Finally, the startup wants to launch a marketplace of professionals. This could be helpful if you're looking for a plumber for instance. And it could represent a new revenue stream for the startup.
LeoCare plans to grow its insurance portfolio sevenfold by the end of 2021. The team will also grow from 35 to 80 people.