Insurtech Kalepa has raised $75 mn in Series B funding at a valuation of $470 mn, following a year in which it tripled both revenue and its customer base.
The round was led by Updata Partners, with participation from existing investors IA Ventures and Inspired Capital. It brings Kalepa’s total funding to $91 mn.
- Kalepa has secured $75 mn in Series B funding at a $470 mn valuation, bringing its total capital raised to $91 mn.
- The company tripled revenue and customer numbers over the past year while remaining cash flow positive for more than two years.
- Kalepa plans to expand its insurance AI platform, enter new markets and double its workforce in 2027.
Kalepa said it has remained cash flow positive for more than two years despite its rapid expansion. The company plans to use the new capital to develop additional AI products, enter new markets and double its headcount in 2027.
Its customers include major insurers and managing general agents (MGAs) such as W.R. Berkley, Bowhead Specialty and AmRisc.
Kalepa expands AI across insurance operations
Kalepa develops AI technology for insurance operations, underwriting, pricing and portfolio management. Its platform is designed to coordinate multiple AI agents across connected workflows while retaining human oversight for decisions requiring professional judgment or approval.
The company says its insurance-specific AI infrastructure adjusts the level of automation according to the task and associated risk. Results are verified and can be traced and audited.
The technology addresses operational pressures facing insurers, including rising losses, the retirement of experienced professionals, growing competition from AI-focused companies and softer pricing conditions.
Rather than limiting AI to individual administrative tasks, Kalepa aims to automate more complex workflows while allowing insurance professionals to concentrate on decisions that require specialist knowledge.
According to the company, insurers using its technology have reported:
- A 30% to 60% increase in premium handled per underwriter.
- A 58% reduction in the time required to produce quotes.
- A 960-basis-point improvement in combined ratio.
- A doubling of the quote-to-bind rate.
These figures represent results reported by customers rather than independently verified industry-wide outcomes.
Kalepa also reported that the volume of work processed through its platform increased fourfold over the past year.
CEO highlights the role of human judgment in AI adoption
Paul Monasterio, co-founder and CEO of Kalepa, said the company’s approach focuses on determining which insurance tasks should be performed by AI and which require human expertise. “Insurance runs on the judgment of experienced professionals, and our Professional Grade AI is held to that same standard,” Monasterio said.
That means insurers can look at each task and ask who does it best, and at what cost. Sometimes that’s AI and sometimes it’s a person. When insurers get that division of labor right, their people’s attention can go to the complex risks, close calls, and broker relationships that need it.
Paul Monasterio, co-founder and CEO of Kalepa
He added that the funding would allow Kalepa to extend its technology across more activities in the insurance value chain, giving companies greater flexibility in allocating work between employees and AI systems.
Kalepa’s platform is used by global and regional insurers, MGAs, reinsurers and program administrators to support operational and risk-related decisions.
Kalepa strengthens leadership team ahead of expansion
The funding announcement follows several senior management appointments over the past year.
Garrett Schlesinger recently joined Kalepa as Chief Technology Officer after spending 12 years at Affirm. He was the financial technology company’s 12th employee and helped develop its real-time underwriting system.
Other senior executives include:
- David Meister, Chief Revenue Officer, previously at Addepar.
- Audrey Howell, Head of Product, previously at Palantir and Butterfly Network.
- Tim Khoo-Jones, Head of Talent, formerly Head of Talent at Block and Shopify.
The appointments come as Kalepa prepares to increase its workforce and expand its product development and commercial operations.
Series B follows $14 mn funding round in 2021
Kalepa previously raised $14 mn in a Series A round in 2021, led by Inspired Capital with participation from IA Ventures. Both investors returned for the latest financing alongside lead investor Updata Partners.
With $91 mn raised to date, Kalepa plans to broaden its AI capabilities across insurance operations, underwriting, pricing and portfolio management while extending its presence into additional markets.
The company is positioning its platform to support a wider range of insurance decisions through coordinated AI workflows, with human expertise remaining part of the process.
