Honcho operates a reverse-auction marketplace that matches consumers with insurance providers, launching a car insurance marketplace last autumn. The platform is available via iOS and Android apps and a web browser. Thousands of consumers have signed up and used the service; there are 12 insurance providers active on the platform selling policies from 30 insurers including Axa, Aviva, Ageas and Zurich. The car marketplace has doubled in size since launch and honcho expects to add over a dozen more providers in the coming weeks. Planned 2020 product expansion includes dedicated reverse-auction marketplaces for van insurance and learner-driver insurance, with Social Chain leading marketing for those launches. The company completed a £1.2m raise to support this next phase of growth. Honcho is developing a reverse auction marketplace starting with auto insurance to allow insurers to bid for consumers' business. Established in 2016, the company had planned to launch in winter but now says 'We're launching very soon' as it addresses a final technical bug before submitting apps to Apple and Google for approval. Private equity firm Maven Capital Partners has made a further £750k follow-on investment to support the business. Maven said the funding will support a national product launch, the addition of new insurance product lines, and significant platform enhancements. Honcho's CTO is working with Microsoft Azure engineers to resolve a stubborn platform issue delaying launch. Maven described Honcho's proposition as a more fun, engaging and cost-efficient way for young people to purchase car insurance via its reverse-auction model. Honcho is a Durham, UK–based insurtech that offers a reverse‑auction marketplace app for car insurance, acting as a matchmaker between customers and insurers. Insurers pay Honcho £1 for the right to bid as many times as they like for a single customer, which the company says allows insurers to reduce premiums to win business. The company is initially focused on car insurance but plans to expand across a range of personal insurance products such as home and pet, and to other markets. Led by CEO Gavin Sewell, Honcho intended to use the newly raised funds to bring the app to the car insurance market in 2018. The financing disclosed was a conditional £150,000 equity investment provided as part of an equity crowdfunding campaign on Crowdcube. At the time of reporting the Crowdcube campaign had raised approximately £549k toward a £650k target.

Total raised

$3M

Funding rounds

3

Latest round

Equity

Latest activity

Apr 2020