Stockholm-based Hedvig has bagged €3.85m in funding to support the company’s ‘aggressive growth plan.’
Cherry Ventures led the investment, with participation also coming from Khaled Helioui.
This investment comes just months after Hedvig raised its seed round which closed on an undisclosed amount earlier in the year. Investors to the previous round included Swedish angels Sophia Bendz, Sven Hagströmer and Nicklas Storåkers.
Founded in 2016, Hedvig is an online home insurance platform to help protect both rented and owned apartments and their contents. The platform also offers insurance products for travel and gadgets such as phones and bikes.
There is no fixed contract, a user pays a monthly fee depending on what they need to cover for that month. Hedvig takes a fixed 20 per cent of the monthly payments, ensuring the best service is provided and they don’t earn more money by denying claims.
Claims can be reported through the app which an AI solution will monitor and verify. Any money left in the claims pot is donated to charities chosen by the consumer.
Capital from the round will be used to support the growth of the company and hire more staff.
Hedvig co-founder and CEO Lucas Carlsén said, “Customers are not getting the user-friendly experience they deserve from the incumbent insurers. It is quite natural, since more complexity and friction gets people to use their insurance less – a profitable strategy for insurers. This goes against everything we believe in, and therefore we are turning it around completely.”
Last year, Cherry Ventures led the €4m Series A round of B2B temporary accommodation booking platform Homelike.
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