Global online RV rental and outdoor travel marketplace, Outdoorsy, raised $120m in equity and debt financing to drive growth and expansion of its InsurTech business, Roamly.
The $120m raise includes a $90m private placement equity round led by Moore Strategic Ventures, ADAR1 Partners, Monashee Capital, SiriusPoint Ltd and Convivialite Ventures, the corporate venture group of Pernod Ricard. Existing investors Altos Ventures, iAngels and Greenspring Associates also participated in the round, while Pacific Western Bank provided the $30m debt facility.
Roamly is designed to provide “innovative digital insurance products for travellers and recreational vehicle owners”, eliminating the commercial exclusion clause that traditionally inhibits online listing activity. Roamly insures RVs and campers as ‘rent ready’, potentially marking a new era of economic opportunity for owners of recreational vehicles. It calculates its risks using data it has collected for claims administration on the RVs rented out to travellers through its marketplace to date.
It provides the owners of vehicles with comprehensive insurance while outsourcing the underwriting and reinsurance of its policies to traditional insurers.
Its new insurance products launched in private beta last year and will be marketed to Outdoorsy’s customers and new and existing buyers of recreational vehicles in North America. Owners in the Outdoorsy marketplace use Roamly to insure their assets for use on Outdoorsy and are now building out fleets to keep up with expanding renter demand.
Commenting on Roamly’s future plans, Outdoorsy CEO Jeff Cavins said, “Before Roamly, RV owners had very few insurance options that would allow them to rent out their RVs without violating the terms of their annual insurance policy. Roamly is solving that problem.
“Customers are embracing outdoor travel at unprecedented levels. Consequently, road trips are surging in interest, and our Roamly products are experiencing strong customer adoption.”
Earlier this month, Outdoorsy expanded its outdoor experiences portfolio by partnering with outdoor luxury accommodations operator Collective Retreats, as well as participating in its $23m Series C funding round.
Through the partnership, the two companies aim to transform the rapidly growing outdoor hospitality market by developing new accommodations and outdoor services. They will also work together to build a suite of offerings designed to cater to road travellers and guests looking for an elevated outdoor accommodation experience.
Cavins added, “This new capital will catalyse Roamly’s expansion and support the launch of Roamly in Europe, as well as aid in the expansion of Outdoorsy’s new accommodations venture with Collective Retreats, a luxurious reimagining of the outdoor accommodations space.”
Roamly’s underwriters include Lloyds of London and Aviva. One of its reinsurers is SiriusPoint, which is also an investor in the startup. SiriusPoint chairman and CEO Sid Sankaran said, “We are excited to support Roamly and the fast growth the company is experiencing through our strategic partnership. This includes our participation in the company’s equity round and a commercial agreement to support the development of insurance products that serve their customers’ needs.
“Roamly’s market prospects and the speed of the company’s growth are global. The unique approach that Roamly has taken with its product innovation is a first-of-its-kind offering in the global market for recreational assets,” he added.
Roamly has also signed a global contract with insurer Generali to sell trip insurance to renters.
Currently, Outdoorsy has 35,000 vehicle listings on its site and has booked more than 1.46 million travel days in 2020. Prior to this funding round, Outdoorsy raised $75.1m. Founded in 2015, the company operates in the United States, Canada, Australia, France and the UK, and wants to mobilise the 54 million-plus RVs that currently remain idle.
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