honey insurance Successfully completed a $108 million funding round, the largest Series A funding round ever in Australia. This is a significant milestone achieved in an environment where venture capital investment in the Australian technology sector has declined by more than 50% in 2023 and funding in the global Insurtech landscape has fallen by more than 70% in the same period. This large round shows that the Australian founding team continues to compete with the best on the global stage, positioning Honey Insurance as a strong challenger to the local home insurance oligopoly.
The round was led by Gallatin Point Capital, a private investment firm headquartered in Greenwich, Connecticut, with US$5 billion in assets under management. Gallatin Point Capital’s primary investment focus is on financial institutions, and the funds it manages have invested in numerous insurance companies and insurance sectors globally.
Transforming home insurance with smart technology
honey is a digital home insurance provider that combines public housing information, satellite data and artificial intelligence to estimate rebuild costs, allowing you to complete a ‘hassle-free’ buying process in under three minutes.
Honey also provides customers with technology and services that help reduce up to 50% of avoidable accidents in the home. For example, Honey offers eligible customers a free smart home sensor kit that can monitor for risks like fire, water leaks, break-ins, and more. By helping prevent accidents and providing proactive protection, Honey is reshaping the insurance landscape and helping Australians stay safer, ultimately reducing insurance costs and creating a win-win.
Honey’s approach to fair and consistent pricing, along with simple product design, has led to 15 exclusive partnerships over the past two years with companies such as Metricon, AGL and Bank of Queensland.
honey insurance Founder and CEO Richard Joffe (pictured) said: “Honey Insurance is excited to welcome a new partner who will provide us with the firepower we need to triple our revenue, increase profitability and grow our headcount to over 200 over the next 18 months. This funding will allow us to further invest in our award-winning product design, making Honey a truly seamless experience from purchase to billing. The caliber of our investors highlights the unique opportunity to transform Australian markets that have been uncompetitive and lacking innovation for too long.
“We are also grateful for our partnership with RACQ under the leadership of David Carter. “They have been by our side through every bump in the road, and their flexibility and long-term commitment are an example of how startups and established companies can drive change across industries.”
Angelo Azar, COO of Honey, said: “As a technology-driven insurance company, we are customer-centric, which has led to our Net Promoter Score of 92, the highest in Australia. Customers participate in every engagement. In fact, we were recently ranked the 6th fastest growing technology company in Australia. “This is a significant achievement for a company that launched in June 2021 with less than 20 employees.”
Peter Tonagh, Chairman of Honey Insurance and former CEO of Foxtel and News Corporation, said: “Australia’s insurance industry has one of the lowest levels of investment in innovation relative to revenue in the world and we are working to change that.
“We are leveraging the most innovative technology and data platforms globally to better protect most Australians’ most valuable asset: their homes.”
Lance Toler, Managing Director of Gallatin Point Capital, said: “The bar for entering a new market like Australia was extremely high, but the caliber of the founding team, impressive growth and innovative customer solutions that Honey brought to the table was extraordinarily high. A compelling combination. We have come to the conclusion that a true challenger like Honey Insurance is long overdue in the Australian homeowners insurance industry, and we are delighted to support them on their journey.”