Australian insurtech startup Cover Genius banks $11m in new funding

Australia’s Cover Genius said it raised A$15 million (US$10.8 million) in a new funding round led by high-growth software and AI-focused investor King River Capital.

The fundraise was supplemented by a loan from Leap Capital, the company said in a statement.

Cover Genius co-founders Chris Bayley (left) and Angus McDonald / Photo credit: Cover Genius

The funding announcement also comes after the company’s recent partnership with Shopee Thailand, which makes Cover Genius’ product and parcel insurance solutions available on the ecommerce platform. Within the last month, the startup has also partnered with American consumer electronics firm Tile and online furniture marketplace Wayfair.

Founded in 2014, the global insurtech firm taps third-party insurers globally to offer insurance policies for travel, auto, property, retail, fintech, and gig platforms, among others. It has offices in North America, the UK, Netherlands, Germany, Japan, Singapore, India, Korea, Indonesia, Malaysia, Thailand, New Zealand, and Australia.

Cover Genius said it plans to use the new funds to bolster its offerings and onboard new partners worldwide.

According to a ResearchAndMarkets report, the global ecommerce market is expected to reach US$2.4 trillion this year, growing from US$1.8 trillion in 2019. It also expects the market to stabilize and reach US$3 trillion at a compound annual growth rate (CAGR) of 14% through 2023.

“Online companies are increasingly looking to Cover Genius to help them accelerate their growth with tailored and optimized protection products offered at the point of sale and sign up,” the company said in the statement, adding that the addressable market for embedded insurance products has surged with the outbreak of Covid-19.

Cover Genius raised US$10 million last year from a series B round also led by King River Capital.