Functional Finance, a insurance software platform for managing general agents (MGA), insurers, and wholesalers, has raised a $20 mn Series A funding round led by Walkabout Ventures.
Munich Re Ventures and Phil Edmundson, founder of Corvus Insurance, also participated.
Functional Finance, which has seen a 2,500% jump in premium payment volume year-over-year, caters to MGAs, insurance companies and wholesalers.
Rashmi Melgiri, co-founder of CoverWallet, leads the platform, which simplifies tasks like invoicing, premium payments, collections, and reconciliation.
This funding will allow us to accelerate our product development and invest in additional strategic hiring for engineering, product development, customer success, and operations. Ultimately, this funding will enable Functional Finance to deliver even more value for our customers and the industry
Rashmi Melgiri, CEO and co-founder of Functional Finance
The startup initially launched with an $8 mn seed round, gaining early support from Walkabout, NEA, Altai Ventures, and Starr Insurance, led by Hank Greenberg.
The company’s platform offers solutions to simplify invoicing, premium payments, reconciliation and collections, among others.
By automating these functions, the platform allows insurance organisations to concentrate on creating new products, risk management and enhancing underwriting accuracy.
Josh Diamond, general partner at Walkabout, highlighted the company’s strong execution and growth since the seed round, while Ben Bergsma of Munich Re Ventures emphasized the platform’s potential for automating financial operations within the insurance industry. Melgiri noted that the new funding will boost product development and strategic hiring to enhance the platform’s offerings.
Since investing in Functional Finance’s seed round, the company has exceeded its early goals and milestones and continues to scale impressively in a challenging market environment
Josh Diamond, general partner at Walkabout
“We have watched Functional Finance build a platform with tremendous commercial potential. The company’s industry expertise and innovative technical approach to automating FinOps will offer the insurance industry greater flexibility and capabilities,” – Ben Bergsma, principal at Munich Re Ventures says.
by Peter Sonner
