UK-based PeppercornAI, a conversational AI insurtech company, announced that it has secured £3.25M (approximately €3.78M) in its latest round of funding.
Despite a 34 per cent decrease in investment in UK fintech and insurtech sectors last year, PeppercornAI says its funding round was oversubscribed.
Wealth Club contributed £1.9M (approximately €2.21M) of this amount and the funding also involved high net-worth investors, alongside existing investors EHE Capital and Angels Invest Wales.
In April 2022, PeppercornAI secured £1.8M in seed funding from EHE Capital.
PeppercornAI founder, Nigel Lombard, says, “My thanks for the continual support of EHE Capital, to Angels Invest Wales and for the brilliant team at Wealth Club for making the raise so successful.”
Guy Remond, founder of EHE Capital, says, “To raise £3.25M in the current climate is a glowing testament to the strength of the PeppercornAI team and their mission to bring substantial efficiencies to administering insurance policies using their AI-powered platform, Pipr.”
A conversational AI platform built specially for insurance
Founded in 2020 by Nigel Lombard, PeppercornAI leverages conversational AI technology to streamline operational costs, enhance risk management, and enhance customer experiences in insurance policy transactions and management.
In 2023, PeppercornAI introduced its SaaS platform, Pipr, to assist the motor industry amid increasing cost pressures. Pipr facilitates the digital transformation of the insurance industry, helping providers lower operating costs and improve risk protection.
Founder Lombard, says, “The insurance industry has barely changed since insurance started being sold online thirty years ago. Technology, specifically AI, has the potential to completely change the way consumers buy and manage their insurance policies and can also deliver significant benefits to providers at the same time.”
“However, as an industry that’s historically been slow to adopt technology, insurance providers are worried about keeping up with the pace in which AI is developing. That’s where PeppercornAI comes in.”
“Our team of insurance experts has built and proven a new model that allows providers to unlock the benefits of the technology now, can be integrated seamlessly and quickly, and ensures their businesses aren’t left behind.”
The company’s leadership team has over 300 years of combined experience in insurance, covering areas like underwriting, pricing, technology, and compliance.
Capital utilisation
The funds will be used to advance PeppercornAI’s conversational AI platform and meet the growing B2B demand in both the UK and international markets.
Gayle Bowen, Head of Direct company investments at Wealth Club, says, “We believe PeppercornAI has the potential to transform the insurance industry and it became clear to us that Nigel and his team were the people to do it given their deep sector knowledge and network.”
“The fact that they were able to prove the technology works, demonstrating tangible results and achieving industry-leading metrics significantly contributed to their success in securing investment. The company looks well-positioned to grow its B2B offering, which is its next big step.”
“For many early-stage companies, it’s been one of the most difficult periods to raise capital – but not for PeppercornAI. Wealth Club members were quick to spot this potentially stand-out company and within a month the round was heavily oversubscribed.”
Brief about Wealth Club
Wealth Club offers investment opportunities to experienced investors, with over 55,000 members and £1.4B invested across funds and companies.
The firm specialises in enabling high-net-worth individuals to grow wealth independently, having invested over £160M directly into early-stage technology companies.
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