Travel Insurtech Brand Faye Raises $10 Million
An insurtech company with a focus on travel has scored a sizable funding round just ahead of the busy summer season.
The funding round details:
This week, Faye announced that it had raised $10 million. The Series A was led by Munich Re Ventures alongside existing investors Viola Ventures and F2 Venture Capital. Menora Tech and former Allianz Global Travel Insurance CEO Mike Nelson also participated. To date, the company has now raised a total of $18 million, including a seed round raised last year.
Launched last year, Faye is a digital travel insurance platform that allows customers to purchase protection for their trips, allowing them to get reimbursed for non-refundable expenses should their plans get canceled or delayed. To get started, users can enter their destination and travel dates into Faye in order to view coverage rates. Should customers need to file a claim, this can also be done via the app, with reimbursement being delivered digitally for greater speed.
According to Faye, the service has seen revenue quadruple in 2023. Furthermore, during its first year on the market, the company earned millions in premiums.
Currently, Faye is available in 48 states, but the company expects to be nationwide soon.
What they’re saying:
Commenting on the concept and vision of Faye, the service’s co-founder and CEO Elad Schaffer said, “Faye fundamentally views travel insurance differently. Until Faye, travel insurance was often thought of as a reimbursement service. Faye’s approach combines travel insurance with real-time assistance, trip alerts, a 24/7 concierge and even financial support.” Schaffer added, “This approach is working: we continue to see rapid growth in travelers using Faye, and coming back for more – month over month.”
Munich Re Ventures investment director Sidra Ahmed (who is also joining the Faye board of directors as a result of the deal) said of adding the company to the firm’s portfolio, “With the end consumer in mind, Faye provides transparent, digitally-integrated comprehensive coverage, and a real-time approach to managing the many potential hiccups that can happen on a trip. Faye has successfully married the worlds of travel, insurtech and FinTEch to seamlessly enable consumers to protect their travel investments. We are excited to join the Faye team on their journey.”
Looking at Faye’s site, it’s easy to see why the platform is growing in popularity. Not only does the service seemingly make it simple to explore plan options but the company likely also benefits from the increased attention on travel insurance that’s come post-pandemic. With this new injection of funds, Faye definitely feels poised for continued growth as demand for travel remains strong.