Over the weekend, UK-based insurtech Honcho completed its equity crowdfunding round on Crowdcube with a total of £849,880 secured from 712 investors. The campaign was launched in December and successfully raised its initial £650,000 days before the funding closed.
As previously reported, Honcho is described as a reverse-auction marketplace where insurers enter a competitive real-time bidding process in order to offer the best price to customers. It is aiming to launch in Summer 2018 with nearly 20 insurance brands that will pay a £1 fee to bid rather than the average £50 commission charged by comparison sites. While sharing more details about its platform, Honcho stated:
“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.”
Prior to its Crowdcube round, Honcho raised £595,000 to fund its platform, along with a prototype mobile application, and to now lead a social-first launch marketing campaign, and to engage with the top 20 motor insurers and brokers. All funds from the crowdfunding campaign will go towards 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.
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