German InsurTech hepster closes $11m Series B financing round

By Gloria Methri

European embedded InsurTech hepster has raised €10 million ($11 million) in a Series B financing round from existing and new investors with Element Ventures, Seventure Partners, and Claret Capital Partners (Fund III1). 

The new capital consisting of equity and debt will be deployed to support hepster’s expansion into new markets, delivering sustainable growth and securing its pathway to profitability.

hepster offers an API-driven ecosystem that enables companies from all industries to seamlessly integrate needs-based customised insurance into their digital customer journeys. The company is headquartered in Rostock, Germany with operations in Germany, Austria, and France.

Hepster has an innovative approach to platform extensions and strong momentum in securing compelling B2B partnerships, especially in the high-growth areas of mobility and the circular economy. Most recently, it secured new, significant enterprise partnerships, further cementing its position as one of the leading embedded InsurTechs in Europe.

Christian Range, CEO and Co-Founder of hepster, said on the financing round, “We are delighted with the unreserved trust of our existing and new investors, but also the trust of our entire team, which has delivered an outstanding performance over the last seven years.”

Antony Baker of Claret Capital Partners added, “We, as adviser to the fund, are delighted to have backed hepster alongside the other investors. The insurance market is increasingly becoming digitised, automated, and simplified and companies need to depend progressively on additional offerings for their customers. That’s where hepster comes in with Embedded Insurance.”

Michael McFadgen of Element Ventures said, “Our decision to continue to support hepster is based on their promising business model, but more importantly on the cooperation we have had so far. With their focus on embedded insurance, hepster has been able to establish a strong market position. Therefore, we see further growth potential for the InsurTech company and look forward to the upcoming developments of the company.”