Functional Finance caters to managing general agents (MGAs), insurance companies and wholesalers. Credit: Mer_Studio/Shutterstock.

Functional Finance, a software platform that automates billing, payments and reconciliation for the insurance sector, has raised $20m in a Series A financing round.

The company will use the funds from this Walkabout Ventures-led round to expand its platform and team headcount.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Munich Re Ventures and insurance innovator Phil Edmundson also contributed to this round.

The Series A fundraise follows an $8m seed round that attracted early backing from a diverse mix of insurance and technology investors.

These included Walkabout, New Enterprise Associates, Altai Ventures and Starr Insurance, led by industry veteran Hank Greenberg.

Functional Finance CEO and co-founder Rashmi Melgiri said: “This funding will allow us to accelerate our product development and invest in additional strategic hiring for engineering, product development, customer success and operations.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Functional Finance, which has seen a 2,500% jump in premium payment volume year-over-year, caters to MGAs, insurance companies and wholesalers.

The company’s platform offers solutions to simplify invoicing, premium payments, reconciliation and collections, among others.

By automating these functions, the platform allows insurance organisations to concentrate on creating new products, risk management and enhancing underwriting accuracy.

Munich Re Ventures principal Ben Bergsma said: “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.”

Walkabout general partner Josh Diamond said: “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.”