Honcho, a UK-based reverse-auction marketplace where insurers enter a competitive real-time bidding process to offer the best price to customers, has launched an equity crowdfunding campaign on Crowdcube seeking £650,000 as it prepares to launch its upcoming platform. The company revealed:
“Honcho is a new mobile app that’s going to revolutionize the way people buy products and services…saving them time and money. We have developed the first online reverse auction marketplace for financial services. A reverse auction is where you, the consumer, receive bids and become the focus of the auction. Companies will compete against each other to win your custom which is how we think it should be! It’s disruptive and innovative, and we’re going to start by launching into the car insurance market in 2018.”
Using the app is simple:
- Download the App
- Enter all insurance details and hit ‘bid’
- Then watch as insurers bid and re-bid to win business
- Once you see a bid that’s right for a customer, they are to use Honcho to purchase directly with the insurer
All funds from the Crowdcube initiative will be used for completing technical integration with the insurer panel, launching Honcho’s platform into the market, and acquiring users through innovative digital marketing and social influencing campaigns. The company added:
“We have raised £595,000 to date to fund the build of the reverse-auction marketplace, prototype mobile application, and to now lead a social-first launch marketing campaign, and to engage with the top 20 motor insurers and brokers. Commercial loans exist.”
Since its launch, Honcho’s Crowdcube campaign has secured more than £500,000 from over 250 investors. It is set to close at the end of January. Honcho is currently aiming to launch in July 2018.
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