Spanish insurtech startups have been gaining momentum in recent years, fueled by technological advancements, investor interest, and a shift toward digital-first business models in the insurance sector. Tech companies like Weecover are simplifying the insurance process by providing platforms that help non-insurance entities, like e-commerce and fintech firms, offer insurance products to their customers. And now the Barcelona-based embedded insurance player has snapped €4.2 million in funding.
The round was led by Swanlaab Venture Factory and existing investor Nauta, which backed Wegrow and HappySignals. La Roca Capital, Bankinter, Prosegur, and Íope Ventures (the investment vehicle of Telefónica Seguros and Wayra) also participated in the round alongside several previous investors such as Astorya VC.
The financing will be used to undertake its growth and international expansion plans. The company currently has 20 employees and plans to add more, mainly in marketing, sales, and technological development to consolidate its leadership position in Spain and deploy the operation outside the country.
What challenge does it tackle?
Many small businesses struggle to obtain the right coverage due to the complexity and high cost of traditional insurance policies. They also struggle with long-term commitments, confusing terms, and high premiums that don’t align with their needs.
Weecover addresses these issues by offering short-term, easy-to-understand insurance policies that are specifically tailored to small business owners. Its goal is to simplify the insurance process, making it quicker and more transparent for businesses to secure the necessary coverage without unnecessary complexity or financial burden.
Pioneer in embedded insurance
Weecover was founded in 2019 by Jordi Pagés and Rafael Gallardo in Spain. The company offers a broad range of APIs and technology solutions that facilitate fast, competitive, and secure connections between insurers and consumer distributors. Its Insurance as a Service (IaaS) platform enables insurance products and services to be offered through retail companies, e-commerce platforms, financial institutions, and digital applications in an agile and user-friendly manner.
The platform provides insurance and contracting solutions, along with service and after-sales support, covering the entire insurance distribution process. It serves as an ideal solution for new insurance distribution channels by promoting embedded insurance and optimising existing channels for both local and global insurance companies and brokers.
The solution allows any consumer distributor to quickly implement an insurance offer and contracting proposal for their retail, banking, and finance businesses, adapting the processes to the distributor’s operations while ensuring top-tier security, privacy, and performance standards. The Weecover platform is also now capable of integrating generative AI developments into its operations, enhancing customer service and reducing costs.
By the end of 2024, its platform transacted more than 100,000 insurance contracts per year and is used by clients from different sectors that rely on Weecover to offer, contract, and provide after-sales insurance and protection services to their customers.
Customer base
Weecover already operates with the main retail and financial distributors in Spain, such as PcComponentes, FNAC, Decathlon, seQura, and insurance companies such as Mapfre, Línea Directa or Lagunaro. It is also present in other international markets such as Portugal, France, Andorra, and Mexico.
Jordi Pagés, CEO of the company, said: “Having the backing of funds such as Swanlaab or Nauta allows us not only to accelerate our expansion plans, but also to strengthen our value proposition and continue to offer innovative solutions to our clients. We are excited about the future that lies ahead in the insurance sector.”
Juan Revuelta, Partner at Swanlaab, commented: “At Swanlaab, we are excited to join Weecover in this new stage of growth, betting on its differential technology to optimise the implementation of Embedded Insurance with ease. We firmly believe in the promising future of this space within Insurtech and in Weecover’s ability to lead this transformation thanks to its market vision. It is a sector full of opportunities and we are confident that Weecover will play a key role in its development. Furthermore, the team’s in-depth knowledge of the insurance sector, led by Jordi Pagés, is a truly unique asset compared to the competition.”
Jordi Viñas, General Partner de Nauta, said: “Since Nauta invested in Weecover in 2021, we’ve had the pleasure of watching the company and the team grow and mature. We see that the insurance industry continues to adapt as consumers want easy access to a broader base of products. We’ve been impressed by the traction Weecover’s solution has had amongst a varied group of customers looking to offer insurance products embedded in their sales process. By enabling the seamless addition of insurance to its clients’ existing offering and thereby increasing their clients’ profits, Weecover has become a must-have product for those clients. Hence, we’re very optimistic about the future of the company.”
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