InsurTech 50 firm PeppercornAI has raised £3.25 million in its latest funding round.
The funding, of which Wealth Club raised £1.9m, included high net worth investors, existing investors EHE Capital and Angels Invest Wales. The round was heavily oversubscribed despite reports showing investment into UK FinTech and InsurTech was down 34% last year.
PeppercornAI uses conversational AI to reduce operational costs, better protect risk and deliver a superior customer experience for buying and managing insurance policies.
Last year, the InsurTech launched its SaaS platform Pipr to support the motor industry amid rising cost pressures. Pipr supports the rapid digital transformation of the insurance industry, enabling providers to benefit from reduced operating costs and better risk protection.
The funding will be used to further develop the company’s conversational AI platform and support the pipeline of B2B demand in the UK and from overseas.
“The insurance industry has barely changed since insurance started being sold online 30 years ago,” said Nigel Lombard, CEO and founder.
“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.
“However, as an industry that’s historically been slow to adopt technology, insurance providers are worried about keeping up with the pace in which AI is developing. That’s where PeppercornAI comes in. 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.”
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Gayle Bowen, head of direct company investments at Wealth Club, said: “We believe PeppercornAI has the potential to transform the insurance industry and it became clear to us that Nigel and his team were the people to do it given their deep sector knowledge and network.
“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. For many early-stage companies, it’s been one of the most difficult periods to raise capital – but not for PeppercornAI. Wealth Club members were quick to spot this potentially stand out company and within a month the round was heavily oversubscribed.”
Guy Remond, founder of EHE Capital, 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.”
Tom Preene, operations manager for Angels Invest Wales, said: “We’re really pleased to have joined fellow investors linked to Angels Invest Wales in backing PeppercornAI. 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 businesses providing cutting-edge solutions in the traditional business sphere.”