🌱Omocom raises €3.7 million to provide micro-insurances for the circular economy
We are proud to lead Omocom latest €3.7 million investment round along with Inventure.
Circular processes mean that we reuse or share existing resources instead of producing new ones. However, traditional insurance is fully adapted to a linear system and works poorly when things are not owned but rented, shared or re-used.
To solve this problem, omocom created a completely digital insurance solution that integrates directly into the sales flow on online platforms, providing microinsurance while products are rented to consumers. Omocom built a digital system for risk calculation, matching, design of insurance terms and claims settlement specifically for this new environment.
“Everything we do at omocom has the sole aim of using insurance to aid a transition to a more circular economy. We want to use insurance as a tool to drive sales on these circular platforms, thereby creating the conditions for products to be used more extensively and for a longer period. We are incredibly excited by getting our new investors on board because they understand this impact focus as well as the specificities of being an insurtech start-up.” — Ola Lowden CEO, omocom.
The current economic and consumption system is unsustainable. Every year we generate the equivalent to 125 000 jumbo jets worth of electronic waste,[1] while clothing utilisation in China has decreased by 70% in the last 15 years,[2] and the average European car is parked 92% of the time.[3] By creating the right conditions for products to stay in use, omocom accelerates the shift to a circular economy while enabling new revenue stream for product owners, as the most frequent users of peer-2-peer rental platforms earn ÂŁ3000 or more in over a 30 day period.[4]
“The sharing economy means that more sharing equals less consumption that equals less manufacturing. By reducing the risk of transactions, omocom increases the likelihood of effectively changing consumption patterns and helps break the cycle of purchasing items for non-use,” says Orson Stadler, Senior Principal at Mustard Seed MAZE, a Lisbon-based impact fund that invests across Europe. “We are excited to partner with good friends at Inventure and Luminar Ventures who have provided outstanding support and guidance to the omocom management team to date, as well as welcoming new partners in Mundi Ventures as part of this latest round of funding.”
Inventure co-led this round that also relied on the participation from Alma Mundi Insurtech Fund and Luminar. The company will use the investment to accelerate product development and growth into new verticals and out of the Nordics.“We are delighted to continue backing Omocom in this round as they’ve really shown that they’re building a solution that’s needed in multiple verticals. Moreover, the need for their product is clearer than ever during times like these, when we expect more unemployment as well as more uncertain times in general. The fact that they keep breaking sales records mid-crisis goes to show that the need for circular processes is only going to expand, even with negative market development” says Linus Dahg, Partner at Inventure.
Omocom was founded by Emanuel Badehi Kullander, Ola Lowden and Tobias MĂĄrd in 2017. Together with researchers at leading universities in Sweden they developed risk calculation algorithms that enable omocom to make real-time risk assessments on digital platforms. Since the launch in October 2019 omocom are now live on 8 platforms and have over 15 000 customers.
[1] A New Circular Vision for Electronics, World Economic Forum, 2019
[2] A New Textiles Economy Redesigning Fashion’s Future, Ellen MacArthur Foundation, 2017
