French startup Neat has successfully raised €50 million (approximately $55 million) in its latest funding round. The investment is divided into 60% equity and 40% debt.
Company Overview
Neat specializes in providing embedded insurance solutions, allowing retailers and other businesses to offer insurance products directly to their customers. The company manages the sales process, pays commissions to partners, and transfers risk to insurance and reinsurance companies. Currently, Neat collaborates with 1,500 distribution partners.
The company’s offering is described as a “turnkey, white-label insurance service” on its website. Neat provides over 40 different insurance products, including:
- Extended warranties
- Travel insurance
- Event cancellation
- Theft, breakage, and breakdown coverage
- Buy-back options
- Cancellation for any reason
- Satisfaction guarantees
- Completion guarantees
Neat’s services cater to a variety of sectors, including eCommerce, retail, travel, mobility, events, hosting, banking, high-tech, and medical devices. These products are designed to help businesses increase revenue, foster customer loyalty, and drive repeat sales.
Recent Industry Developments
This funding announcement follows Coverdash’s recent achievement of raising $13.5 million in Series A funding. Coverdash aims to enhance its embedded insurance offerings by expanding its partner network, internal team, and insurance carrier panel. Their technology allows partners across various industries to integrate customizable insurance solutions into their platforms with a single line of code.
Stephanie Khoo, a partner at Nyca, which led Coverdash’s Series A round, emphasized the benefits of embedded insurance for small and medium-sized businesses (SMBs). She stated, “Providing SMB service providers with the ability to offer their customers seamless access to business insurance not only strengthens client relationships but also introduces a new revenue stream.”
Additionally, in May 2023, Obie raised $26 million in Series B funding to grow its embedded insurance offerings for real estate investors. Obie’s platform offers instant quotes through partner platforms, aiming to streamline the insurance purchasing process for the 18 million real estate investors in the United States.
These developments highlight the growing trend of integrating insurance solutions directly into various business models, reflecting a shift towards more accessible and efficient insurance services.
