Diesta, a London-based B2B SaaS startup revolutionising payment operations for the insurance industry, has just secured $3.8 million in seed funding. The round was led by FinTech Collective, a New York-based VC firm, with participation from Commerce Ventures and existing investors Restive Ventures and SixThirty.
This latest investment follows the company’s $2 million pre-seed round secured last year to scale its platform across the UK, Europe, and the US. Further, this round also follows the recent influx of investments in the European insurtech industry, including the €25 million funding in Stoïk and the €30 million investment in Qantev.
Funding to fuel growth
With this fresh funding, Diesta plans to accelerate its expansion across new geographies and insurance classes, focusing on growing its presence in the UK, Europe, and the US.
The company will also invest in further enhancing its platform, offering even more advanced functionality to insurance finance teams through AI-driven integrations and embedded fintech partnerships.
Lastly, it will support the company’s aspiration to become the go-to payment operations layer for the insurance sector, helping to drive digital transformation in one of the world’s most antiquated markets.
“The status quo surrounding payment processing in the insurance industry is stuck in the 20th century and cannot last”, said Toby Triebel, Partner at FinTech Collective. “We are thrilled to partner with the Diesta team on their mission to reimagine this industry from the ground up. Their vision to eliminate premium processing time and costs, offering real-time payments, reconciliation, and treasury management has resonated strongly since the first meeting.”
Pain points in B2B payments
The insurance industry handles over $1.75 trillion in commercial premiums every year, but it’s still very fragmented and relies on outdated, manual systems. Each insurance policy generates 7x its value in premium payments. These inefficiencies cost the industry $32 billion annually. While payments for policyholders and claims are becoming more digital, B2B payments within the insurance chain remain stuck in old, inefficient systems, impacting the entire sector.
Diesta is focused on improving this efficiency. While it is estimated that the reconciliation and allocation of premium payments within the distraction chain costs the industry $32 billion annually, Diesta aims to reduce these costs for insurance and broking companies by 75%.
Diesta’s founding team has direct experience of the problem. Co-founder Julian Schoemig, a German engineer, previously worked for Munich Re in Germany, the UK, and the US. His co-founder, Christopher Davis, an IT security expert, previously worked at Discovery Bank. They met at an Antler residential and founded Diesta.
Modernises insurance payments
Diesta’s technology is designed to be the financial operations backbone for the industry. By combining various payment and premium data sources into its platform, the company brings enormous efficiency and new revenue opportunities to the sector that involve manual payment processes.
Recently, the company gained traction in the London market with a client base that includes both emerging insurtech firms and large enterprises with revenues surpassing $1 billion.
Co-Founder and CEO Julian Schoemig, who is announcing the raise today at the ITC Vegas conference, said: “We’re addressing one of the insurance industry’s biggest back-office challenges—premium payments. We’ve shown that we can bring digital payment innovation to a space long considered an unsolvable burden. By working with everyone from nimble insurtechs to some of the largest brokers and MGAs in the London market, we know that the Diesta platform can deliver immense value for entities of all sizes. We are thrilled to have the backing of such high-profile investors as partners in our growth journey.”
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