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.

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.”

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.”

"Insurtech company Functional Finance lands $20m Series A funding" was originally created and published by Life Insurance International, a GlobalData owned brand.

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