Renters’ insurance provider Urban Jungle has gained a further £1.6 million of investment in its second major funding round of the year.
The UK-based insurtech company, which operates entirely online and uses artificial intelligence to lower risk and cut fraud, secured the investment from venture capital and private investors, bringing its total raised in 2020 to £4.1 million.
The insurtech company raised £2.5 million in March as lockdown measures were imposed in response to the outbreak of Covid-19.
Jimmy Williams (pictured), chief executive officer of Urban Jungle, said: “We wanted to raise more in the spring but, with lockdown restrictions pending, we had to close the round early. However, since then, the business has performed incredibly well and we are seeing opportunities for new products and new markets.”
The provider of home contents, building and contents, and tenants’ liability insurance has raised £7.8 million since its launch in 2016. Investors include former Prudential chief executive officer Rob Devey, Octopus Group chief executive officer Simon Rogerson and Funding Circle co-founder James Meekings. Devey joined Urban Jungle’s board as a non-executive director in December.
Following a significant period of growth, Urban Jungle now has more than 25,000 customers and 23 staff, and is growing at more than 20% per month.
Williams commented: “2020 has been a really tough year for everyone, but we’re lucky that people always need insurance, especially when times are tough, and even more customers are looking for a value focused provider like us.”
“Lockdown changed the insurance market in many ways. For us, there are more people working from home and investing in expensive laptops which they want to cover. There’s also been a big rise in bike ownership and these are treasured items that people want to protect.”
Urban Jungle plans to invest in hiring, marketing and “giving the traditional market some serious competition”, according to Williams.
He said: “The insurance sector has been calling for a newcomer to disrupt it for some time and we’re doing just that.”