Berlin-headquartered insurtech Inzmo, that aims to transform the laborious insurance process, has raised €3.1M in its Seed round of funding led by Change Ventures. In addition, existing investor Swiss insurance giant, Helvetia, also participated in this round and has increased its investment with this fundraising. The round brings the total amount raised by the company to €5.2M, to date.
Use of the funds
The raised capital will enable Inzmo to increase its workforce, accelerate product development and to focus on new business.
It will also add new products focused on the household insurance sector including a rental deposit insurance offering – aimed at the profitable German rental market comprising 40 million private rental premises.
What pain points does Inzmo solve?
According to the founders, “traditional insurers are failing to appeal to the digital generation of customers who expect to manage their insurance needs in the same way they do their day to day lives – via their smartphones. Unlike the cumbersome services of traditional insurance providers that take weeks if not months to process a single insurance claim, Inzmo’s full-stack automated solution means the claims process can be executed within the mobile app in a matter of hours – all without the customer even having to contact their insurance company.”
The company was founded in 2015 by Meeri Rebane and Risto Klausen. Inzmo’s mission is to eliminate the pain of the insurance process by offering a full-stack solution where everything from buying a policy to making a claim can be done in an instant. With its end-to-end solution, the startup is making the process simpler, quicker and more transparent.
The startup focuses on B2B2C solutions across various verticals including, consumer electronics, bike insurance, and rental deposit insurance, among others. In 2017, Inzmo was recognised as the best Fintech startup in Europe by the European Commission. The company also received the prestigious Insurance Shaper of the Year 2019 award at EXECinsurtech.
What sets Inzmo apart from its competitors
Inzmo’s technology, which enables it to partner with a range of B2B and B2C channels, is what the company believes is the differentiator. It partners with retailers and ecommerce channels to provide a seamless one-stop-shop where insurance products can be sold and serviced, claims managed, and all other processes executed.
“Our app eliminates the headache of managing the often complex insurance process by giving clients full and instant control. They can change policies, submit a claim, and receive up-to-date information. Meanwhile, our insurance partners can enjoy the benefit of Inzmo’s comprehensive insurance back-office solution without having to invest in expensive development. Our technology also enables us to insure used property, giving us a larger reach in terms of customer base,” explains Meeri Rebane, co-founder of Inzmo.
Advantages for the tenant
Customers using the Inzmo app can now pay an affordable monthly fee starting from €3.50 instead of paying an upfront deposit, which in Berlin can amount to around €2,400. This amount is equivalent to three months’ average rent for a 1-2 bedroom apartment in the city.
“In these uncertain times, consumers are paying more attention than ever to their financial affairs. With the average deposit for a 1-2 bed flat in Berlin at €2,400 and €3,000 in Munich – expensive deposits are a struggle for tenants. Inzmo’s rental deposit insurance is a fraction of the full deposit and for those with restricted cash flow offers an attractive alternative and fairer financing option,” comments Risto Klausen, co-founder, Inzmo.
The company will partner with property owners, agents and marketplaces to offer its rental deposit insurance. The product backed by Société Générale will be available in the coming weeks for new and existing rental agreements. Those with existing monetary deposit arrangements will be able to easily switch.
Inzmo claims to be the first insurtech startup in Germany to launch a fully digital rental deposit guarantee service in a market currently dominated by traditional insurers.