Tapoly, a London-based on-demand insurance provider, is in conversations to raise its Series A round, said Janthana Kaenprakhamroy, CEO and founder.
The company has raised £750K to date. Now it is raising £2m to assist with geographic expansion and to gain market traction, she said. It will use the funds to build out its IT and marketing teams and to grow its brand awareness.
Founded in 2016, Tapoly provides on-demand flexible commercial insurance products for SMEs, freelancers, the self-employed and the gig economy. It offers commercial insurance products on demand, directly to customers, as well as through brokers and affiliate partners. Tapoly is an MGA providing 3 levels of service, including a software-as-a-service platform to brokers, MGAs and insurers, plus distribution and underwriting consultancy.
Its products are available to consumers for specific contracts or time frames whether that be for one day or as long as needed. Customers can acquire insurance in one minute through its online process.
Most of its investor conversations are with strategic VCs, said Kaenprakhamroy. Tapoly is receiving significant US-based investor interest because the gig economy is prominent in the US and its value proposition is interesting. Strategics and investors with knowledge and understanding of the gig economy would be a great fit.
Kaenprakhamroy expects to close the round this quarter. Funds will last between 12 to 24 months, depending on how quickly Tapoly deploys capital to its expansion efforts. Its pre-money valuation is about £10m, and it expects revenue to reach £2m by year-end, in line with the level of funding deployed to acquire customers.
It prefers a larger investment of £1m to £2m from strategic investors.
Tapoly officially launched in the UK in 2018. This quarter, Tapoly will be moving into Australia and parts of Asia, she said. US market entry is planned for Q2 this year. Additionally, it will expand its European presence this year.
Its investors include: Lifenet, Startup Funding Club, the London Co-Investment Fund and nine angel investors.
Kaenprakhamroy previously worked in investment banking in London. Born in Thailand, she moved to Sweden at age 12, and came to London to study English. Kaenprakhamroy is named as one of the Top 6 Women Founders to Watch by Forbes and is among the Top 10 Insurtech Female Influencers according to the Insurance Institute.