Cachet, the platform worker-focused insurance services marketplace, has raised €5.5mn, to expand its services to gig workers across Europe and the UK
Cachet, a platform-based insurance services marketplace for gig workers, has secured €5.5 million to expand its services across Europe.
The cash will be used to expand the company’s personnel, strengthen technology and data models, and expand across Europe.
Cachet holds an insurance distribution licence that has been passedported to the most of EU nations, and it presently operates in Estonia, Latvia, and Poland, as well as serving consumers in the United Kingdom, Lithuania, and Finland. It also works with Upsteam, Citybee, and Cleanify, in addition to Bolt and Uber. Cachet has a 40% market share in the app-taxi industry in Estonia, the company’s initial market.
Investing in technology to improve its platform
Cachet leverages technology to create customised auto insurance and delivery rider insurance coverage for gig workers, allowing them to earn more across numerous platforms. The Tallinn-based insurtech, according to the business, provides solutions for the increasing platform economy workforce, which will account for one out of every five economically active persons in the EU by 2025.
“Even though the platform economy has made companies like Deliveroo and Bolt some of Europe’s fastest-growing companies, it has been accompanied by a heated debate about workers’ rights,” Hedi Mardisoo, co-founder and CEO of Cachet, says. “We have been involved in EU-level discussions to regulate platform work, and there is an impulse to solve problems by reclassifying platform workers as employees.” However, applying old thinking to new situations is problematic. However, applying old ideas to new challenges is likely to throw the baby out with the bathwater.
“Rather, we believe we can use technology to solve problems that are partially caused by technology.” This manner, we can retain the platform work ecosystem’s flexibility and independence while putting the gig worker back in control.”
Providing coverage for gig workers
Cachet claims to already offer more cheap motor insurance to both ride-hailing drivers and regular consumers, as well as delivery rider insurance that covers personal injury and property damage, accidents, and medical bills. Third-party liability, as well as personal health and accident coverage, will be included in the company’s new insurance plans for gig workers.
More than 12 insurance underwriters, including Allianz, PZU, and VIG Group, have put their faith in the organisation.
Truffle Capital, located in Paris, led the €5.5 million fundraising round, marking their first investment in the region. Uniqa Ventures, a Central Europe expert, and Icebreaker, a former backer and lead investor, also participated in the round. Representatives from vc. Truffle Capital and Icebreaker.vc will join Cachet’s supervisory board.
“Cachet has a strong regional footprint in the Baltic region, and a clear long-term vision on how to address platform economy concerns from the freelancer’s perspective,” says Bernard-Louis Roques, co-founder and CEO of Truffle Capital. The new economy is being driven by freelancers. Cachet has outstanding data capabilities, including unique data assets, a data platform, and data science resources, allowing it to handle each freelancer individually while reducing risk for its insurance partners, making it an emerging power in one of the most dynamic insurtech markets.”
