Digisure, a prominent InsurTech startup recognised for its innovative Protection-as-a-Service platform, has officially ceased operations as of last Friday.
The shutdown comes despite the company’s commendable revenue growth and accomplishments, as the firm admitted it had failed to secure additional capital, according to InsurTech Insights.
In a statement issued by Paul Smith, the Chief Operating Officer and co-founder of Digisure, the company disclosed its unfortunate inability to secure additional capital, despite boasting a thriving revenue base.
Smith commended the team’s achievements, highlighting milestones such as processing $50m in premiums and managing 15,000 claims.
Throughout its time in operation, Digisure amassed over $20m in funding from a diverse pool of investors. Notable backers in the startup included Xplorer Capital, Morado Ventures, Valor Equity Partners, Clocktower Technology Ventures, and Tech Pioneers Fund.
Digisure specialised in offering a suite of services encompassing risk screening, policy administration, insurance management, and claims handling.
One of its key innovations involved the development of custom risk and trust scores tailored specifically for the sharing economy, catering to a niche market fraught with unique challenges regarding commercial viability.
Despite its promising trajectory and notable accomplishments, the closure of Digisure marks a significant setback for the InsurTech sector.
The alarming news highlights the formidable challenges and uncertainties inherent in the startup landscape, despite considerable investments and technological advancements, with the shutdown serving as a cautionary tale within the industry.
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