European InsurTech player Hepster secures €10m in funding round

European InsurTech player Hepster secures €10m in funding round

In the rapidly advancing InsurTech landscape, Hepster, an embedded insurance startup based in northern Germany, has proven to be an influential player.

Hepster, founded in 2016 by Christian Range, Hanna Bachmann, and Alexander Hornung, is a dedicated exponent of embedded insurance – a thriving segment of the market set to be valued at a staggering $30bn by the decade’s end.

The InsurTech firm recently announced a €10m capital injection received from a group of investors, according to a report from InsurTech Digital. The round saw participation from notable entities including Element Ventures, Seventure Partners, and Claret Capital Partners. These funds are set to propel Hepster’s ambitions for growth in its existing markets.

Hepster’s core business model revolves around embedded insurance, which utilises technology to amalgamate insurance products directly into existing e-commerce platforms’ checkout flows. The strategy predominantly targets non-insurance brands such as car rental companies, tour operators, and high-end retailers. By providing consumers insurance at their fingertips, the market eradicates the need for individuals to seek standalone insurance policies, alleviating the traditional insurance model’s stress and hassle.

With the fresh €10m investment, Hepster aims to speed up its growth in the markets where it currently operates: Germany, Austria, and France. The company claims to utilise “state-of-the-art technologies” to “revolutionise insurance”.

Hepster indicates it has made significant strides in the firm’s growth trajectory. Over just seven years of operation, the firm has amassed more than 225,000 insurance customers and has partnered with over 2,500 B2B(2C) companies. Over the past three years, the InsurTech startup has achieved a stunning growth rate of 1,500%.

“We are pleased about the unreserved trust of our investors, but also the trust placed in our entire team, which has delivered outstanding performance over the past seven years,” Hepster CEO Christian Range commented.

Backing this sentiment, Michael McFadgen, Partner at Element Ventures, a noted InsurTech investor, said, “Our decision to continue supporting Hepster is based on their future-oriented business model, but above all on our previous cooperation. With its focus on embedded insurance, Hepster has been able to establish a strong market position.”

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