New insurtech enters travel market with €1.6m investment led by Gateway
Paris-based insurtech Koala has secured an investment of €1.6 million led by London-based incubator and venture capital firm Insurtech Gateway alongside Playfair Capital, Techstars Ventures, and private investors.
Koala’s first product offers flight disruption insurance, which will provide "instant compensation" for flight delays and cancellations.
Koala's data-driven products alert travelers to any disruption and pay-out instantly, without the need of any forms or exclusions.
The company will use the proceeds from the seed round to support its growth plans, team expansion and new product development.
Ugo Weyl, co-Founder and CEO of Koala, said: “Every year, hundreds of millions of passengers suffer flight disruptions and face an uphill battle to claim compensation. Travellers face antiquated claims procedures, with only 15% of customers receiving a pay-out. We felt this was unfair, a delay is a delay and customers should be compensated 100% of the time.
"We want to bring travel insurance into the 21st century, removing uncertainty and providing the invisible but ever-present layer of protection that today’s consumers demand.”
He added: “We are very excited to have Insurtech Gateway joining the Koala family, bringing their unique insurance expertise to the team. We are looking forward to having their support as we launch our product at Falcon 9 speed and scale internationally.”
Peter Davies, investor at Koala, CEO of Airline Management Group and former CEO of Air Malta, Caribbean Airlines and Brussels Airlines, commented: “Koala offers a unique way for airlines to save money and overcome one of their most significant customer service challenges, while at the same time offering an excellent experience to their travellers. Watch this space, Koala is on the way to becoming the next travel essential.”
Stephen Brittain, co-founder of Insurtech Gateway said: “We had seen several flight disruption startups before Koala. Their positioning to work directly with the airlines was bold, different and clearly learned the hard way. We’re excited to support them as they launch their beta product and to be a part of their future success. They are going to be one to watch.”