Two pet insurance companies got funded this week
Driven by the surge in pet ownership, pet insurance is booming. And investments of $350 million (€288m) and $3 million (€2.5m) this week certainly show the pet insurance industry is hot.
Although increasingly popular, the market penetration of pet insurance is still low in major pet markets such as the UK and US: approximately 25 percent and 2 percent respectively.
These two companies are betting on this opportunity and hope to drive increased adaption.
Bought by many
Since launching in 2017, the UK company has become one of the leading pet insurers in Europe. They now reach millions of pet owners across Europe and the US.
The Company has doubled gross written premium (GWP) for three consecutive years to more than USD 220 million in the past twelve months.
With an investment of $350 million (at a $2 billion valuation), the company is now ready for the next step and hopes to reach millions more pet parents. Steven Mendel, CEO and Co-founder at Bought By Many, said:
“By creating unique policies, dramatically improving customer experience, and working closely with vets, we have made it possible for pets to be healthier and for them to enjoy longer, happier lives with their owners. We have hit several exciting milestones over the last four years, including our expansion into Sweden and the US, but most importantly we have gained the trust of hundreds of thousands of happy customers.”
One of its major investors, EQT, has a long background in the pet industry and its experience from developing IVC Evidensia (the largest veterinary clinic network in Europe) and Musti Group (the largest pet care specialist in the Nordics, listed on Nasdaq Helsinki since 2020).
The company is currently still operating at a loss.
Odie Pet Insurance
Odie Pet Insurance, on the other hand, just closed a $3 million investment to accelerate its growth and invest in technology.
Their product and strategy are geared toward Millennials and Gen Z’s, the fastest growing demographic of pet parents in the U.S.
Odie’s creative in its customer acquisition approach. Instead of only focusing on direct-to-consumer through their website, it also created B2B partnerships. For example, Odie gained significant traction across channels such as employee benefits, personal insurance, and the pet industry. They aim to work with partner companies that share in their view that no pet parent should be forced to choose between finances and their pet’s well-being.
Besides hiring new team members for key roles, they’ll put the funding towards product and technology enhancements.
The investment round was led by Walkabout Ventures and Slow Ventures which have successful track records within the insure-tech and consumer pet sectors.