Paris-based embedded insurance startup Neat raises $55 million

Neat, an insurtech company based in Paris, has successfully raised €50 million (approximately $55 million at current exchange rates).In addition to a typical equity-for-cash transaction, a portion of this round comes from a debt facility. According to Neat, the breakdown is about 60% equity and 40% debt, meaning the deal is effectively a €30 million equity raise, with an additional €20 million in debt.

Neat enables other companies to offer insurance products to their own customers. Specifically, it focuses on affinity insurance, which is tied to a service or product. For example, if you’re purchasing a smartphone, you may want insurance to cover accidental damage. Other examples include travel insurance, concert ticket insurance, or extended warranties on household appliances.

The company specializes in embedded insurance, where its retail partners sell insurance alongside their products. Retailers earn a commission on each sale without needing to handle the complexities of the insurance industry. Neat, meanwhile, works with insurance and reinsurance providers, taking on the role of a managing general agent.

Neat’s independence from its insurance partners means it can develop new products internally, thanks to its compliance and actuarial teams. This allows them to embed a small, transparent commission, while distributors and reinsurers also benefit from working with Neat.

Neat’s full-stack approach gives it flexibility to create a range of insurance products, unconstrained by legacy systems. For instance, travel insurance pricing should vary based on the traveler’s age or trip type, while smartphone insurance costs should differ depending on the model and condition.

Neat is diversifying its offerings by covering a range of sectors. “We’re fairly agnostic, spanning 10 verticals,” said Neat’s co-founder and COO, Fabien Cazes. “This helps us mitigate risk and creates technical synergies.”

Neat provides insurance linked to payment cards for Floa, travel insurance for Pierre et Vacances, and hearing aid insurance for Afflelou and Krys. Partners can bundle insurance with payment cards or sell it as an add-on, both online and in-store.

Currently, Neat collaborates with 1,500 distribution partners, who have collectively sold over 1 million insurance products. The Series A round is led by Hedosophia, with participation from Alma Mundi Ventures, ETFS, Athletico Ventures, and existing investors.