We’ve been covering US-based Insurtech startup FAYE since their Seed round in 2022 and Series A round in 2023, and they seem to be continuing to grow as they announced a $31 million Series B funding round today. What’s driving this online insurance company’s continued growth?
Well, it seems to be a combination of travel insurance, support while away from home, and a variety of financial solutions in a comprehensive smartphone app. You could say that FAYE has pioneered a similar field in the way Lemonade has targeted millennials with a much sexier packaged insurance platform.
Co-founder and CEO Elad Shafer told TechCrunch that one of the key factors in its continued growth is its wallet-friendly approach to claims payments.
“Wallet is a way for us to instantly charge your phone, so you can use it like you would Apple Pay to pay for things. Suddenly, it becomes your favorite travel card that lets you enjoy better exchange rates, travel budgets, post-trip adjustments, and more. We really want to be your guardian and companion when you travel.”
Within that scope, FAYE provides 24/7 support, “real-time” travel monitoring and notifications about the country you are in, vaccine information, health mandates, telemedicine access to doctors or in-hotel care, and refunds and benefits.
Shaffer says the company's travel management is “designed to help overcome travel challenges and make sure your trip goes smoothly.”
He continued: “Most Americans either don't buy travel insurance or aren't used to buying travel insurance… So I would argue that we're still competing with incumbents like Allianz partners and AIG.”
Another notable insurtech startup in this space is Battleface, a U.S.-based travel insurance startup that offers built-in travel insurance products and has raised $14 million to date.
FAYE’s $31 million Series B investment was led by Portage, with participation from Lumir Ventures and existing investors F2 Venture Capital, Viola Ventures, and Munich Re Ventures.
