SAN FRANCISCO, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Functional Finance, a software platform revolutionizing financial operations (FinOps) for managing general agents (MGAs), insurance companies, and wholesalers is pleased to announce the closing of a successful $20 million Series A funding round led by Walkabout Ventures (Walkabout), with participation from Munich Re Ventures and Phil Edmundson, the visionary behind Corvus Insurance.
This announcement comes on the heels of a remarkable period of growth for Functional Finance which saw an increase of more than 2,500 percent in premium payment volume year-over-year (YOY). This explosive growth underscores the increasing demand for streamlined FinOps in the insurance sector, particularly as MGAs, insurers, and wholesalers modernize and scale.
“Walkabout was excited to lead the Series A round because we have the utmost confidence in the vision and execution of the team since investing in its Seed Round,” said Josh Diamond, general partner at Walkabout. “Since investing in Functional Finance’s seed round, the company has exceeded its early goals and milestones and continues to scale impressively in a challenging market environment. We look forward to continuing to support the team as they expand their footprint in the insurance ecosystem.”
“We have watched Functional Finance build a platform with tremendous commercial potential,” said Ben Bergsma, principal at Munich Re Ventures. “The company’s industry expertise and innovative technical approach to automating FinOps will offer the insurance industry greater flexibility and capabilities. We see significant value for many businesses up and down the value chain, including several within our own portfolio, in leveraging the Functional Finance platform.”
Functional Finance's platform offers comprehensive solutions that simplify invoicing, premium payments, collections, reconciliation, and more. By automating these critical back-office functions, the platform enables insurance organizations to focus on creating new products, mitigating existing and emerging risks, and improving underwriting accuracy.
“We are incredibly grateful for the continued support from our investors,” said Rashmi Melgiri, CEO and co-founder of Functional Finance and former co-founder of CoverWallet with Functional Finance President Jim Ermilio. “This funding will allow us to accelerate our product development and invest in additional strategic hiring for engineering, product development, customer success, and operations. Ultimately, this funding will enable Functional Finance to deliver even more value for our customers and the industry.”
Functional Finance launched with an $8 million seed round which garnered early support from a diverse group of influential insurance and technology investors, including Walkabout, New Enterprise Associates (NEA), Altai Ventures, and Hank Greenberg’s Starr Insurance.
About Functional Finance
Functional Finance is a cutting-edge software platform which revolutionizes financial operations (FinOps) for managing general agents (MGAs), insurance companies, and wholesalers. By automating key financial processes, Functional Finance empowers insurance organizations to focus on core competencies, driving efficiency and growth. For more information, visit www.functionalfi.com.
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Jennifer Overhulse
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