This revolutionary platform has carved out a unique position for itself in the insurance sector, making significant strides in applying AI technology to underwriting and portfolio optimisation.
The substantial funding round was spearheaded by Caffeinated Capital, with substantial participation from Emergence Capital and Pear VC. This fresh injection of capital comes hot on the heels of Federato’s Series A announcement, which took place less than a year ago.
In simple terms, Federato operates as a real-time platform for both individual risk underwriting and portfolio optimisation. A crucial element of its functionality lies in the underpinning federated data graph. This technology allows for a ‘single pane of glass’ view of client information and makes it possible for AI to suggest optimal next steps to users, thus harmonising the art and science of underwriting.
This latest funding will be directed towards continuing the company’s forward momentum, applying AI and Reinforcement Learning to the challenge of portfolio optimisation. Furthermore, this capital boost is expected to help Federato maintain its industry lead in applying a broad array of machine learning techniques to ensure AI continues to impact this significant industry positively.
Since its previous Series A funding round, Federato has seen remarkable growth. It has tripled its customer base, doubled spend within existing customers, and branched out into several new segments across both commercial and personal lines of business.
Commenting on the funding round, Caffeinated Capital Partner Varun Gupta remarked, “Since leading their Seed round two years ago, we have been privileged to see the Federato team build something exceptional in P&C insurance. Federato’s software is so valuable that billion-dollar global insurance companies and startup MGAs alike buy, use, and evangelise it. After hearing rave reviews from those customers, seeing the company’s strong growth, and observing the team’s march towards building the Industry Cloud for P&C, we are excited to triple down.”
Just two years ago, Federato secured its Seed funding, which was also led by Caffeinated Capital. This previous investment round has facilitated the firm’s journey in establishing a notable presence in the P&C insurance sector and forming the basis of its continued growth.
Source: Fintech Global
