Koala raises funding to support new product development
Paris-based travel insurance provider Koala has closed a €1.6 million seed round
Koala provides customers with instant claims payouts in the event of flight disruption and cancellation, as well as lost and delayed luggage compensation.
The seed round was led by London-based Insurtech Gateway, alongside Playfair Capital and Techstars Ventures, as well as private investors. The funding will be used to support Koala’s rapid growth plans, team expansion and new product development.
Ugo Weyl, Co-Founder and CEO at Koala, said: “Every year, hundreds of millions of passengers suffer flight disruptions and face an uphill battle to claim compensation. Travellers face antiquated claims procedures, with only 15 per cent of customers receiving a payout. We felt this was unfair, a delay is a delay and customers should be compensated 100 per cent of the time.”
Koala’s offering – which tracks journeys in real-time and instantly informs passengers as disruption occur, issuing cash compensation on the spot – is also a welcome addition to the travel insurance sphere in light of travel uncertainty brought about by Covid-19, and will likely give consumers that much-yearned-for peace of mind when booking flights as part of plans to holiday abroad this year.
"We want to bring travel insurance into the 21st Century, removing uncertainty and providing the invisible but ever-present layer of protection that today’s consumers demand,” said Weyl.