Rnwl, an Insurtech startup, has closed its funding round on Seedrs.
According to the offering page, Rnwl raised £492,225 from 534 investors in 34 days. Rnwl was offering equity at a pre-money valuation of £6 million. The security was EIS qualified and approved for the Seedrs Secondary Market.
In a recent blog post, Rnwl founder and CEO Goncalo de Vasconcelos, explained his company’s service that streamlines the cost comparison of coverage and enabling a seamless transfer to a competitor. He said that the lengths some motor insurers will go to prevent customers from moving are unacceptable.
“When I tried to stop my own car insurance auto-renewal the only option I was given was to accept the 66% increase in cost. To stop auto-renewal I had to find a phone number, buried deeply in the site, then call the insurer and make seven menu selections before I could cancel and save some money. This has affected so many people that I founded a business based on cancelling motoring insurance policies and finding better deals. Add to this avoiding huge fines for forgetting to pay your car tax or getting your MoT then Rnwl has to be one of the greatest stress-avoidance and money-saving apps available anywhere.”
Rnwl cites data from comparison website Compare The Market that claims that people may “pay more than £450 as a loyalty penalty.”
“Half the households surveyed saw their insurance premiums increase when sticking with their existing provider, or being unable to cancel, at renewal in the past 12 months by an average of £81.”
Regarding the use of proceeds, Rnwl anticipates the bulk will go to boosting staff (74%) with the rest going to marketing and operational expense.
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