Paris-based insurtech startup Neat has achieved a significant milestone by raising €50 million in a Series A funding round. This new capital injection, spearheaded by Hedosophia and supported by several other prominent investors, marks one of the largest Series A rounds for the embedded insurance sector in Europe. The funding will enable Neat to strengthen its presence in France and accelerate its international expansion.

Funding Details and Structure

On September 10, 2024, Neat announced the successful completion of its Series A funding round, securing €50 million. The investment comprises approximately 60% equity and 40% debt, translating to about €30 million in equity and €20 million in debt. This capital boost is pivotal for Neat’s ambitious growth plans, which include expanding its market reach and enhancing its technology platform.

Neat's Market Position and Offerings

Founded in 2022, Neat has quickly established itself as a leading player in the embedded insurance industry. The startup offers a range of innovative insurance products integrated directly into retail and service experiences, both online and in physical stores. These products include coverage for various needs such as travel, device protection, and warranty extensions. By eliminating integration costs for merchants, Neat allows them to enhance revenue streams and offer value-added services to customers.

Neat’s business model focuses on embedding insurance products into the purchasing processes of partner retailers. This approach enables retailers to earn commissions on sales without managing the complexities of the insurance industry. Simultaneously, Neat collaborates with insurance and reinsurance companies to manage risks and provide tailored insurance solutions.

Growth and Achievements

In less than two years of operation, Neat has experienced remarkable growth, achieving a 700% increase in its business over the past year. The company now boasts over 1 million customers and collaborates with 1,500 distribution partners, including notable names such as Floa (BNP Paribas), Alain Afflelou, Pierre et Vacances, and Decathlon. Neat’s product range spans over 10 sectors, including banking, high-tech, travel, and medical devices.

Neat’s innovative approach has also attracted support from major insurers and reinsurers, further validating its business model. The startup’s ability to cover a broad spectrum of insurable products and create bespoke insurance solutions has positioned it as a leader in its field.

Future Plans

With the new funding, Neat aims to consolidate its position in the French market, drive organic and external growth, and accelerate its international expansion. Co-founders Fabien Cazes and Maximilien Dauzet expressed their gratitude to investors, emphasizing that the funding would enable Neat to continue developing innovative, transparent, and user-friendly insurance products. Their goal is to support millions of customers in protecting the products and services they value.

Neat’s successful Series A round underscores its rapid ascent in the embedded insurance sector and highlights its potential to lead the market in Europe and beyond. The infusion of €50 million will empower the startup to expand its operations, refine its offerings, and further its mission of providing accessible and tailored insurance solutions. As Neat continues to grow, its innovative approach promises to reshape the insurance landscape and set new standards for the industry.