Eleos announced it had raised a venture capital investment of $4 million in a seed round led by Fuel Ventures and Indico Capital, which comes just six months after the competition of a pre-seed round.
Launched in 2022, Eleos made rapid progress in consolidating its position as the UK’s only provider of fully digital life insurance and income protection products and is on course to pass the £1 million revenue mark by the end of the year.
Eleos was created to address two issues in the insurance industry: the inability to communicate the importance of financial protections like income protection and life insurance and the difficulty in developing fully digital solutions.
Eleos is transforming consumer access to critical financial protections by collaborating with leading financial brands. The company uses its proprietary full-stack B2B2C solution with APIs and white-labeled journeys to simplify integration without additional costs. This enables partners to benefit from new revenue streams, enhanced customer retention, and complete regulatory coverage under the company’s FCA authorization. Eleos’ partners include credit-building specialists Loqbox and CreditLadder and flexible loan providers CreditSpring and Updraft.
At the same time, consumers have also come to expect more from their insurers than just simple insurance policies, so Eleos’ customer attraction and retention plan involves offering its customers several free ancillary benefits to offset the cost of their insurance premiums. This include a 24/7 remote General Practitioner (GP) service, mental health support and a process that gives cashback on everyday purchases. The partnership with Eleos offers companies the advantages of this high-value marketing strategy.
As for digital solutions, even though it is common among traditional insurers for the customer journey to start online, the existing model still depends on lengthy phone calls with agents and a protracted underwriting process. And the current customer experience is cumbersome and disjointed, with policies taking days to go live. Consumers expect to buy financial products entirely online and on the platforms they know and trust. This is the second element of Eleos’ goals.
This seed funding round builds substantially on previous funding from Fuel Ventures, Founders Factory, Insurtech NY, Magic Fund, and Indico Capital Partners.
KEY QUOTES:
“With our new funding we will launch more lines of insurance in the life and disability verticals and strike more distribution partnerships in the UK. Part of the funding is also earmarked to launch operations in the US.”
– Eleos’ CEO Kiruba Shankar Eswaran – who founded Zaask in Portugal and later sold it to Worten
“We’ve been looking for a way into the insurtech sector for a long time but to do that we need a team with specialist experience, an understanding of the challenges and access to a substantial market. With Eleos we’ve found all three and we believe their products encapsulate our thinking about the insurance space – giving people easy access on familiar platforms. We’re working together to make our shared vision of the future a reality and that’s why we’ve doubled down on our support for their growth and expansion.”
– Mark Pearson, founder of Fuel Ventures
“Indico is happy to keep supporting experienced founders such as the founders of Eleos. The insurtech market has plenty of room to grow and Eleos is targeting areas which are not only sizeable but overlooked by other current players globally.”
– Stephan Morais, Managing General Partner of Indico Capital Partners
