Honcho, a UK-based reverse-auction marketplace where insurers enter a competitive real-time bidding process to offer the best price to customers, has successfully secured its initial £650,000 funding target from more than 475 investors on equity crowdfunding platform Crowdcube.
As previously reported, the platform is aiming to launch in July 2018 with more than 15 insurance brands, who will pay a £1 fee to bid rather than the average £50 commission charged by comparison sites. It was 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.”
All funds from the Crowdcube round will be used to completing Honcho’s 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 noted that it has 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. The campaign is set to close next weekend.
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