Munich Re and former Allianz CEO invest in travel insurtech start-up
A US-based travel insurtech, which made its debut in 2022, has garnered investments from Munich Re and a former CEO of Global Travel Insurance at Allianz. The company expects to quadruple its revenue in 2023 while also aiming to expand its network of travel advisors and distribution partners by over double the current size.
Travel insurance start-up Faye has raised $10 million Series A funding just a year after launching its product in the US, bringing the company’s total funding to $18 million.
The round was led by Munich Re Ventures along with existing investors Viola Ventures and F2 Venture Capital. Additional investors include Menora Tech and Mike Nelson, former CEO of Global Travel Insurance at Allianz.
The funding follows the launch of its Travel Advisor Portal, and the release of its newly developed API to enable seamless integration with travel distributors. Currently accessible in 48 states, including New York, California, Florida and Texas, Faye plans to expand its availability nationwide in the near future.
With the new capital injection, Faye seeks to expand the range of insurance offerings, enhance its scale through automation and integrations, as well as forge new partnerships with brands and distribution partners. The company is led by serial entrepreneurs Elad Schaffer (CEO) and Daniel Green (CTO).
Faye co-founder and CEO Schaffer said: “Faye fundamentally views travel insurance differently. Until Faye, travel insurance was often thought of as a reimbursement service. Faye's approach combines travel insurance with real-time assistance, trip alerts, a 24/7 concierge and even financial support. Our role is to help ensure that you have a smooth adventure that's memorable for the right reasons. We’ve built an offering that travellers will want to use for life, so bringing Faye along is just as obvious as bringing your passport. This approach is working: we continue to see rapid growth in travellers using Faye, and coming back for more - month over month.”
Sidra Ahmed, investment director, Munich Re Ventures, joined Faye’s board of directors, added: “With the end consumer in mind, Faye provides transparent, digitally-integrated comprehensive coverage, and a real-time approach to managing the many potential hiccups that can happen on a trip.
“Faye has successfully married the worlds of travel, insurtech and fintech to seamlessly enable consumers to protect their travel investments. We are excited to join the Faye team on their journey.”
Mike Nelson, former CEO, Global Travel Insurance at Allianz, said: "Travel insurance is a fast-growing industry with evolving needs in the areas of customer experience, product relevance and digital innovation. The team at Faye has impressed me with their vision and accomplishments and has already attracted enormous interest from partners and travel distributors, just one year in the market, and amid economic uncertainty; that’s no easy feat. It was a no-brainer to deepen my support of this top-notch team and product, going from advisor to both advisor and investor.”
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