US-based Insurtech startup FAYE has announced a successful $31 million Series B funding round. This follows their Seed round in 2022 and Series A in 2023, marking a continued trajectory of growth for the online insurance company. What drives this success?
FAYE has innovatively combined travel insurance, travel assistance, and financial solutions into a comprehensive smartphone app, mirroring how Lemonade has revolutionized insurance for millennials with its user-friendly platform.
Co-founder and CEO Elad Schaffer explained to TechCrunch that a significant factor in their growth is their wallet approach to insurance payouts. “The wallet is how we pay claims instantly to your phone so that you can use them like you use your Apple Pay to pay for things. Suddenly it becomes your favorite travel card, where you can enjoy better foreign exchange rates, budget for your trip, reconciliation after your trip, etc. We really want to be the protector and companion when you travel.”
FAYE offers a suite of services designed to ensure smooth travels, including 24/7 assistance, real-time trip monitoring, alerts about travel conditions, vaccine information, health mandates, telemedicine access, in-hotel medical visits, and reimbursements.
Schaffer emphasized that FAYE aims to address the gap in travel insurance adoption among Americans. “Most Americans either don’t buy travel insurance or are just not used to buying travel insurance… So I would still argue that we are competing with legacy providers like Allianz partners, or AIG.”
FAYE is not alone in the space; US-based Battleface, another travel insurance startup, has raised $14 million so far, highlighting a growing market for innovative travel insurance solutions.
The $31 million Series B round was led by Portage, with participation from Lumir Ventures and existing investors F2 Venture Capital, Viola Ventures, and Munich Re Ventures.