The insurtech company Tuio has closed a financing round of 15 million euros to boost its growth. This round confirms investors’ confidence in Tuio’s tech approach to insurance and will focus on enhancing this digital strategy, launching new products, and expanding to new areas.
This third round makes Tuio the best-financed Spanish insurtech. The company began its journey in 2021 with a first round of 450,000 euros supported by Capital Certainty, Cabiedes&Partners, Bewa7er or 7r Ventures, along with a group of 'business angels'. And just a year later, the second arrived, this time three million euros, with Otium Capital, as leader of the round, and to which Extension Fund, Kalonia and BAMCAP Ventures were added.
MassMutual Ventures and BlackRock join the new round of 15 million euros, while former investors such as BAMCAP Ventures or Extension Fund expand their participation.
Ryan Collins, MassMutual Ventures Managing Partner for Europe and Asia Pacific, said: “We are delighted to support Tuio in this critical phase of growth. We were very impressed by the caliber of the leadership team and their vision for the industry. We believe that using technology to improve customer experience and drive operational efficiency positions them well to be the leading insurtech in Southern Europe.”
Christian Hultner, Partner at BAMCAP ventures, adds “we are very proud to expand our participation in Tuio. The team is demonstrating great execution capacity and we are convinced that they will be able to build a great company.”
Ross Ahlgren, Managing Director, Growth Debt, at BlackRock, comments: “We think that Tuio has shown, through their products, that they understand their customer and their evolving needs, driving their mission to deliver more accessible and efficient insurance solutions to a wider audience. We are excited to offer our clients exposure to such an innovative and growing business.”
The investment structure is EUR 15 million across equity and debt. The founders, JoseMaría Lucas, Asís Pardo and Juan García, explain that “Tuio is already very close to profitability and we have developed a structural advantage by having achieved an LTV/CAC, that is, the margin that a customer brings us divided between what it costs us to acquire it, of between seven and nine times. For this reason, it seems logical for us to adopt this investment model in which we are able to use part of this advantage to dedicate the equity tranche to structural investments that enable us to improve the service we provide to our clients. By comparison, other established companies in the sector are around 3-4 times LTV/CAC.”
With this round, Tuio gains momentum to continue growing and serving more customers. As of today, the neoinsurer already has more than 45,000 clients in its home and life insurance and has fixed around 15,000 claims in the last year. Its policies bring together insured assets of nearly 5,000 million euros. The company plans to reach 65,000 customers in 2024.
Tuio stands out for its commitment to a digital model. Right now, 97% of its clients contract under a self-service model, that is, they manage to complete the contracting process without relying in a company agent. Furthermore, 92% of clients who report a claim do so in less than 2 minutes through a digital process in which they provide videos or photos of the damage, which speeds up the processing of the case and its resolution. Consequently, the average age of clients is 42 years, well below the average for traditional insurers.
To achieve these results, the company has been characterized by the deployment of an integrated model, where the insurance product is designed with digital distribution in mind, the digital product is built with the objective of ease of use, operations coexist very closely with the rest of the company and investment in technology acts as a glue between all areas.
This investment round will be used to deepen this technological model as well as hire the necessary personnel to manage new products and support the company's growth. Pet health insurance as well as automobile insurance will be added to the current product portfolio. Both with the same digital philosophy. In this way, Tuio will complete its portfolio, being able to cover the basic insurance needs of anyone.
At the moment, the company consists of 38 employees which are forecasted to growth to 45 by the end of the year. The company will also start to explore its internationalization, that will happen throughout 2025.
Juan García concludes by pointing out that “the importance of this support is the same as that we have received from our clients. Our commitment to digital insurance has been approved not only by users, but also by market agents. We believe that the next large European insurance company will be a direct and integrated model and will have a cost advantage thanks to technology, similar to what GEICO has maintained in the US in the last 20 years and we are working to make Tuio that company.”
About TUIO
Tuio, the digital neoinsurance company of Spanish origin, burst into the market in 2021 thanks to Juan García, Asís Pardo and José María de Lucas. With a first round of financing of 450,000 euros, where they achieved the support of Capital Certainty, Cabiedes&Partners, Bewa7er or 7r Ventures, along with a group of business angels, the company was launched. Many of these investors joined the second investment round, of three million euros, to which the international fund Otium Capital led the investment, along with Extension Fund, Kalonia, and BamCap. All to reach 26,000 home insurance policies by the end of 2023. The acquisition of Luko made it the leading home insurtech in the digital market. In 2024, the third round of financing takes place, of 15 million euros, in which former investors MassMutual Ventures and BlackRock participated together. The objective is to continue growing in this sector, doubling its customer base year after year, diversifying its products and the countries where it operates. More in tuio.com
About Mass Mutual Ventures
MassMutual Ventures (MMV) is a global venture capital firm that invests in financial technology, enterprise SaaS, healthcare technology, climate technology and cybersecurity companies. With teams based in London, Singapore and Boston, MMV manages more than $1 billion in investment capital worldwide. We help accelerate the growth of the companies we partner with by providing capital, connections and advice. With our deep experience and extensive network, MMV helps entrepreneurs build attractive and scalable value companies. For more information, visit www.massmutualventures.com.
About BAMCAP Ventures
BAMCAP Ventures is a venture capital firm formed by a group of experienced entrepreneurs and investors based in Miami, FL and active in the US, Europe, Israel and Latin America. Its direct managers have built leading software companies and led technology-intensive industrial companies globally and are deeply knowledgeable about the international venture capital ecosystem. BAMCAP seeks to accelerate the development of its investees with creativity and maximum proximity to its management teams. For more information, visit https://www.bamcap.vc.
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