Insurtech hyperexponential bags $73m Series B to break into US market
London-based insurtech hyperexponential (hx) that specialises in pricing decision intelligence (PDI) has secured $73 million Series B funding for expansion.
The funding is led by global technology-focused investment firm Battery Ventures, with participation from Silicon Valley investor a16z, and existing Series A investor Highland Europe, which increased its holding in hyperexponential.
The investment will support hyperexponential’s expansion into the US, starting with the launch of its New York office this year. Additionally, it will facilitate further investment in developing new products to meet the rising demand in various insurance markets, such as the SME sector. The company aims to expand its global workforce to over 200 within the next year, effectively doubling its team.
Hyperexponential’s PDI platform, hx Renew, enables insurers to leverage large and alternative datasets, develop and refine rating tools, and employ sophisticated machine learning approaches to price risk and make data-driven pricing decisions at the portfolio and individual level. Since the company’s Series A in 2021, the insurtech cliams it has grown sales 10x while staying profitable, serving global insurers including Aviva, HDI, and Conduit Re.
Amrit Santhirasenan, hyperexponential CEO and co-founder, said: “The insurance industry is at the forefront of a rapidly changing world and must find ways to understand and respond to that change in risk profile. We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset. Although we have more cash-on-hand than we’ve raised, we wanted to bring on new expertise in our target markets as we continue our growth into new verticals and geographies. We are delighted to have attracted a world-class set of investors who bring an unparalleled combination of experience, expertise, and support to hyperexponential in the next phase of our expansion.”
Battery Ventures Partner Marcus Ryu said: "I believe hyperexponential is among the most compelling new entrants in insurtech I have seen in over twenty years of serving the P&C insurance industry. As former software engineers and actuaries with top tier commercial insurers, Amrit and Michael each bring a deep practitioner's grasp of the new requirements for risk pricing. hyperexponential is rapidly becoming an indispensable tool for the insurance industry to thrive in a future that is not reliably the same as the past."
Angela Strange, general partner at a16z, added: "Pricing risk is the most critical function of an insurance carrier. Yet, most actuaries still work with cumbersome Excel models and are constrained by legacy software that limits their ability to dynamically incorporate new data and more sophisticated analytical techniques. Amrit and Michael’s actuarial experience helped them design the system the insurance market needed, and hyperexponential has achieved incredible traction with technical users and executives alike as they’ve completed multiple industry-leading deliveries around the world. hx Renew is rapidly becoming the operating system for pricing risk in the global insurance market. We are thrilled to join forces with the hyperexponential team as they launch in the US and expand beyond specialty lines."
Highland Europe partners Laurence Garrett and David Blyghton, commented: “The hx team have been superb to work alongside since we first invested in April 2021. The business has repeatedly beaten its forecasts and we are delighted to support the Company with additional capital. Working alongside entrepreneurs like Amrit and Michael is what makes the VC role awesome.”
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