US financial sector investment firm Gallatin Point Capital has made its first Australian investment leading a $108 million Series A investment round in technology-based Honey Insurance.
Sydney-based Honey is seeking to disrupt the home insurance market by using technology to reduce both risks and premiums.
Honey says it is able to provide quotes within three minutes and provides free smart home sensors to customers who take out its home and contents policy.
Founder and chief executive Richard Joffe says Honey is able to offer customers who install the sensors ongoing policy reductions of 8%. The sensors reduce the risk of fire, water damage and theft.
Other savings are being achieved by digitising insurance processes wherever possible.
To date, Honey has raised much of its capital from business partners and customers. The company lists as supporters AGL, Harvey Norman, McGrath, RACQ, BOQ, Specialist Financial Group and builder Metricon.
Investors in the company’s seed round in 2021 included Zip and Afterpay co-founders Larry Diamond and Anthony Eisen and Airtasker founder Tim Fung.
Joffe said raising the new capital had been a marathon effort that had taken 10 months and involved meeting with more than 300 potential investors, in Australia and overseas.
Joffe built and sold two tech companies in the US before opting to start Honey in Australia.
Image: Honey founder and chief executive Richard Joffe.