Insurtech firm PeppercornAI has successfully secured £3.25 million in its latest funding round.
Wealth Club led the investment with £1.9 million, supported by high-net-worth individuals, existing backers EHE Capital and Angels Invest Wales.
PeppercornAI touts the oversubscribed round as a financial achievement, coming despite a 34% decline in UK fintech and insurtech investment last year.
The fresh capital will be directed towards further development of PeppercornAI's conversational AI technology and expanding its B2B market presence in the UK and internationally.
The insurtech is known for leveraging conversational AI to enhance the efficiency of operations, manage risks more effectively, and improve the customer experience in the insurance buying and management process.
In response to escalating cost pressures in the motor industry, the company unveiled its SaaS platform, Pipr, last year. Pipr is designed to accelerate digital transformation in the insurance sector, allowing providers to lower operational costs and improve risk management.
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Nigel Lombard, CEO and founder of PeppercornAI, shared his perspective on the industry's evolution and the company's role in it.
“The insurance industry has barely changed since insurance started being sold online thirty years ago. Technology, specifically AI, has the potential to completely change the way consumers buy and manage their insurance policies and can also deliver significant benefits to providers at the same time,” Lombard said.
“Our team of insurance experts has built and proven a new model that allows providers to unlock the benefits of the technology now, can be integrated seamlessly and quickly, and ensures their businesses aren’t left behind. My thanks for the continual support of EHE Capital, to Angels Invest Wales and for the brilliant team at Wealth Club for making the raise so successful,” he said.
Gayle Bowen, head of direct company investments at Wealth Club, commented on the investment's success and the role that PeppercornAI will play in transforming the industry.
“The fact that they were able to prove the technology works, demonstrating tangible results and achieving industry-leading metrics significantly contributed to their success in securing investment. The company looks well positioned to grow its B2B offering, which is its next big step,” Bowen said.
“To raise £3.25m in the current climate is a glowing testament to the strength of the PeppercornAI team and their mission to bring substantial efficiencies to administering insurance policies using their AI-powered platform, Pipr,” Guy Remond, founder of EHE Capital said.
Tom Preene, operations manager for Angels Invest Wales, also expressed enthusiasm about the investment's potential.
“By working with lead investors, we can ensure a strong impact for our investment and leverage the Wales Angel Co-investment Fund to match-fund deals like these. PeppercornAI’s tech has some fantastic potential, and they’re an excellent example of a Welsh business providing cutting-edge solutions in the traditional business sphere,” Preene said.
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