(Jeppe Klausen and Esben T. Nielsen, co-founders of Penni.io. Source: Penni.io.)
Penni.io, a Copenhagen based InsurTech whose Penni Connect embedding solution enables insurers to sell products online through partners such as car dealers, travel providers and banks, has raised EUR 5.7 million in an investment led by Seed Capital Denmark (Copenhagen). A statement from Penni.io the funds will be used to boost European growth.
Penni.io reports that it grew from 16 to 28 employees during 2020 and, as of April 2021, the company now has 37 employees. During 2020 the company says it landed several of the world’s largest insurance companies as customers. Using a SaaS business model, Penni.io reports that its monthly subscription revenue (MRR) increased fivefold in 2020.
“We want to accelerate the online sales of insurance with our customers and establish ourselves in new countries in Europe,” comments Jeppe Klausen, co-founder and CEO, Penni.io. “We must create further growth in the Nordic region and expand our activities in France, where we already have established a strong position. But we must also open up new countries. To accomplish all of that, we need at least 20 new employees in 2021. So, we look forward to an exciting year.”
Esben Toftdahl Nielsen, co-founder and Commercial Director, Penni.io characterizes the company as representing the future of an industry in the throes of disruption. “Thus far, insurance companies have focused on personal sales, but the consumers of the future think digitally and shop online, and insurance is typically purchased together with a car, a house, a membership or in connection with a life event,” Nielsen comments.
Penni.io describes its market opportunity as a “blue ocean,” which is to say few competitors and massive opportunity in a market estimated to be worth USD $3 trillion. Currently, the main option for insurance companies is to develop their own solutions. Penni Connect describes its alternative as standard solution that solves the needs of insurance companies and can be implemented very quickly.
“We have been looking for the right investment in insurance tech for a long time, which we believe is a natural extension of the fintech wave,” comments Peter Egehoved, General Partner, Seed Capital. “In Penni.io we have found the perfect match as they help established insurance companies execute a transformation towards online distribution. In addition, Penni.io has performed at a level and a speed that we rarely see in Denmark. We look forward to helping them on their journey to become the next Danish tech success, as we have done with Trustpilot, Vivino, Templafy and many others.”
Largest Danish InsurTech Investment To Date
“Insurance is a market that will change beyond recognition during the next ten years, and the established players are therefore searching high and low for absolutely the best products to ensure that they remain attractive,” Egehoved adds. “As Penni.io consists of many experienced people from the insurance industry and the start-up world, we are sure that it is the right investment for a venture fund like ours.”
Thomas Krogh Jensen, CEO of Copenhagen Fintech, welcomes Seed Capital’s investment in Penni.io as Denmark’s largest InsurTech investment to date. “I see a huge potential in this area in line with what we have experienced in recent years in the more bank-oriented fintech, which has produced an exponential increase in innovation and new businesses,” he says.