UK-based insurtech Honcho has successfully secured its initial £700,000 funding target through its latest Crowdcube round. The campaign comes less than two years after Honcho raised £829,370 on Crowdcube.
As previously reported, Honcho describes itself as a reverse-auction marketplace where insurers enter a competitive real-time bidding process in order to offer the best price to customers. It aimed 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.
“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.”
Honcho also reported it has signed up more than 10,000 consumers, which the company noted is growing monthly and 14 insurers to its platform.
“As an alternative to price comparison websites (PCWs), honcho drives increased competition and pricing transparency through an auction where insurers bid against each other in real time, with decreasing prices, to win people’s business. Every insurer pays just £1 to enter an auction instead of an expensive PCW commission. For the first time insurers can make pricing decisions based on risk and commercial factors as they can see each other’s pricing.”
Funds from the latest Crowdcube round will be used to scale Honcho’s marketplace and range of insurance products to learner, van, and home. The company is offering 9.21% in equity at a £6,899,999 pre-money valuation. The campaign is set to close next Monday.
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