The round was led by Icebreaker.vc (Finland), Techstars (US), Barclays (UK), Lemonade Stand (Estonia), and a number of other angel investors.
“The gig lifestyle is growing fast and is here to stay,” said Riku Seppälä, the General Partner at Icebreaker.vc.
“The number of people working part-time or full-time for online platforms like Uber, Airbnb or Fiverr has more than doubled in the last three years,” Hedi Mardisoo, Co-founder and CEO of Cachet added and noted that they are currently underserved by financial services providers. “This means that platform workers often have the choice of either buying expensive coverage or simply not working.”
So, as a first step, Cachet created an insurance product that would replace the current inflexible and therefore expensive motor insurance and match the workload of drivers.
“We’ve succeeded in saving our customers on average 50% on their insurance policy,” Mardisoo noted.
In addition to expanding to new countries, Cachet is also looking to add further services catering to the sharing economy, like urban mobility and vacation rental marketplaces.
“Having seen the early success of Cachet and the strong team behind the product, I am confident in the company’s huge potential to solve a number of problems for the increasing amount of people joining in the gig economy,” Chris Adelsbach, Founding Partner at Outrun Ventures and UKBAA Angel Investor of the Year 2018/19 added, having invested in Cachet in a personal capacity.
“Cachet is part of a high growth vertical called ‘embedded finance’ and helps opens up a market to financial service providers that have been struggling to price services in this new, fast-growing part of the economy,” Adelsbach commented.
Founded in Estonia in 2018 by Hedi Mardisoo and Kalle Palling, Cachet currently operates in Estonia and Latvia, providing on-demand motor insurance for ride-hailing platform workers.
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