HDI-backed Swedish insurtech Hedvig raises $10.4m for market expansion

Stockholm-based digital insurance start-up Hedvig has secured 100 million SEK ($10.4 million) in a Series A funding to expand its operations beyond the Nordics.

The round was led by San Francisco-based Obvious Ventures, which was founded by Twitter co-founder Ev Williams, and Swedish retail group Axel Johnson’s venture arm D-Ax.

Hedvig, which is backed by Talanx group's industrial insurer HDI, currently offers homeowners, renters and student insurance in Sweden, and plans to bring its "nice insurance experience" with a people-first approach to the masses.

The insurtech uses machine-learning technology and artificial intelligence to automate its pricing and claims process. Hedvig was established in 2018 and currently insurers more than 15,000 Swedes and a total value of more than 10BN SEK in property and contents.

The fresh capital will be dedicated to developing new services and products, growing customer base in the home insurance market and expanding the startup’s footprint both in Sweden and beyond.

Hedvig has previously raised 30M SEK from Cherry Ventures and other angel investors.

“Hedvig is harnessing its purpose, the power of AI, and its human-centered product to create a modern, full-stack insurance company. Their incredible team is delivering against the mission - to give people the world’s most incredible insurance experience - and we at Obvious are honoured to help scale it further,” said Vishal Vasishth from Obvious Ventures.

Joakim Skarborg, chairman of D-Ax, added: “We are proud to partner with Hedvig’s team on their mission to reshape the insurance business. We believe strongly in the quality of their product and in the market potential of bringing a much-needed infusion of innovation, customer-focus and transparency to the insurance industry. As always, we take a long-term perspective on our investment, and we look forward to supporting Hedvig in scaling their business significantly over the years to come for the benefit of consumers everywhere.”

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