InsurTech firm Flock announced on Thursday it has raised $17 million or R248 million to reinvent insurance for connected vehicles. The InsurTech firm will use the funds to supercharge its expansion into new geographies and product lines.
Flock is a venture capital and Government-backed London InsurTech using data to insure connected motor fleets and commercial drone operations.
The round was led by Social Capital, the Californian investment firm run by Chamath Palihapitiya, a renowned tech investor, Chairman of Virgin Galactic, and an early backer of Slack, Tesla, and Bitcoin. Our incredible existing investors Anthemis and Dig Ventures also participated.
The company said the funding marks a major milestone as it builds a global, fully digital insurance company for connected and autonomous vehicles.
In 2018, Flock launched the world’s first ‘pay as you fly’ drone insurance app, rapidly expanding to capture more than 35% of the UK commercial drone market. It currently insure thousands of commercial drone operators globally. This includes pilots flying for the BBC, Netflix, and conducting medical delivery flights for the NHS.
In 2020, Flock expanded into the rapidly evolving world of commercial motor fleets, launching the world’s first real-time insurance product for car rental platforms, courier companies, and corporate fleets.
“We’ve experienced extraordinary demand. In just one year revenues have grown 38x and we had welcomed onboard flagship customers such as Jaguar Land Rover’s, The Out, and Virtuo, a leading on-demand car rental app,” the company said.
Our mission: to make the world a safer, smarter place
“Transportation is changing faster than ever, but the traditional insurance industry can’t keep up! The proliferation of electric cars, new business models such as ridesharing, and the emergence of autonomous vehicles pose huge challenges that traditional insurers just aren’t equipped for,” Ed Leon Klinger, CEO of Flock said.
“Modern fleets need an equally modern insurance company that moves as fast as they do. Commercial motor insurance is a $160Bn market, crying out for disruption. The opportunity ahead of us is enormous.”
“Everything we do is led by our mission to make the world a smarter, safer place. We strongly believe that the insurance company of the future won’t just pay claims; it will actively help its customers avoid them in the first place. That’s the future we’re building at Flock. We’re delighted that Social Capital has decided to support us, and join us for the ride.”
What’s next for Flock?
The company disclosed today that with new funding it is rapidly growing high-calibre, diverse team, hiring for 60+ roles across every function.
The company added that it plans to expand its motor product into multiple European countries and develop entirely new product lines.
“We have enormous ambitions at Flock and this funding round takes us one step closer to reinventing insurance for connected and autonomous vehicles.”
Commenting on the raise, Chamath Palihapitiya, CEO of Social Capital said:
“Flock is bridging the gap between today’s insurance industry and tomorrow’s transportation realities. Flock has the potential to help unlock and enable a truly autonomous world, and even save lives. We’re excited to be a part of their journey.”