Koba Insurance, a Melbourne-based pay-as-you-go car InsurTech, has raised $500,000 so far in its latest crowdfunding round.
According to a report from Insurance News, Koba raised $1m during an earlier crowdsourcing round in September, as well as $700,000 from angel investors and insurance specific funds, including Hunter Equity Group and Insurtech Gateway.
The recently raised $500,000 is half of its $1m target.
Koba, which launched in November, charges drivers according to their usage of their car, which it says it’s a more fair and accurate way of paying for car insurance.
Payments are split into two. There is a fixed premium to cover drivers while parked, and a per-kilometre rate, typically between 3-10 cents, while driving.
In real-time, Koba measures the distance driven via a usage matchbox-sized device called KOBA Rider that attaches to a car’s On-Board Diagnostics (OBD) port, connected with the KOBA smartphone app to automatically calculate driving distances and charge a per-kilometre rate for each trip.
Koba said the capital will help it build partnerships with car manufacturers to offer connected insurance, evolve the app and build new data-driven insurance products to open doors to new markets.
Andrew Wong, founder of Koba, said, “Once again we’re being overwhelmed by the support and grateful to our new shareholders… The window is closing and now is the time to invest so you don’t miss out.
“Australia is starting to catch up with the rest of the world when it comes to embracing telematic-based insurance and user-based insurance, and now is the perfect time for investors to jump on board.”
Autonomy, a vehicle subscription company, recently partnered with DigiSure, a software company providing screening, insurance management, and claims, to provide embedded insurance for car subscriptions. Autonomy aims to provide easy and affordable ways to access mobility, with a focus on electric vehicles.
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