Functional Finance, a software platform transforming financial operations (FinOps) for managing general agents (MGAs), insurance companies, and wholesalers, announced the successful close of a $20 million Series A funding round.
The round was led by Walkabout Ventures, with additional support from Munich Re Ventures and Phil Edmundson, the founder of Corvus Insurance, according to an announcement.
This financing follows a period of substantial growth for Functional Finance, which saw a staggering 2,500% year-over-year increase in premium payment volume.
The platform’s success reflects the rising demand for streamlined FinOps solutions, as the insurance sector continues to modernize and scale to meet market needs.
Josh Diamond, general partner at Walkabout Ventures, emphasized the firm’s confidence in Functional Finance’s team and trajectory.
“Since our initial investment during the Seed Round, Functional Finance has surpassed its goals and continues to grow impressively, even in a challenging market. We are excited to continue supporting their expansion within the insurance ecosystem,” Diamond said.
Munich Re Ventures’ principal, Ben Bergsma, also expressed enthusiasm for the platform’s potential.
“Functional Finance’s innovative approach to automating FinOps offers the insurance industry increased flexibility and operational capabilities. We see significant value for businesses across the insurance value chain, including those in our own portfolio, by leveraging their platform,” Bergsma noted.
Functional Finance provides a comprehensive solution that automates critical back-office functions like invoicing, premium payments, collections, and reconciliation. By doing so, the platform enables insurance companies to focus on core activities such as developing new products, mitigating risks, and enhancing underwriting accuracy.
CEO and co-founder Rashmi Melgiri, who co-founded the company alongside President Jim Ermilio, expressed gratitude for the investor support.
“This funding will enable us to accelerate product development, expand our engineering and customer success teams, and ultimately deliver even greater value to our customers and the insurance industry,” Melgiri said.
Functional Finance launched with an $8 million seed round, securing backing from prominent investors, including Walkabout Ventures, New Enterprise Associates (NEA), Altai Ventures, and Hank Greenberg’s Starr Insurance.
The platform has quickly gained traction in the insurance industry, providing organizations with advanced tools to improve operational efficiency and drive growth.
The Series A funding will allow Functional Finance to further its mission of revolutionizing financial operations for insurance organizations by automating key processes, making the platform indispensable for companies looking to scale efficiently in an increasingly complex industry environment.