The news: Digital insurance broker UpCover has secured $19 million in Series A funding to expand its commercial insurance platform.

The numbers: The round comprised of $11 million in equity, led by RealVC with support from Antler Elevate’s Global Fund, Betterlabs and Gandel Invest.

Another $8 million was raised by the way of debt financing from Marshall Investments.

UpCover has now raised a total of $23.7 million, including $13.7 million in equity funding.

The company said only 5% of commercial insurance transactions in Australia are conducted digitally, compared to over 60% in home and motor insurance.

The context: The funding will support the expansion of digital insurance products in 2025, building on its existing base of 60,000 businesses using the platform.

Founded in 2021 by Skye Theodorou, Anish Sinha and Sajjad Naveed, UpCover is a digital-first commercial insurance broking company.

What they said: “We’ve defied the odds with UpCover. Not only has the business thrived during one of the hardest years Australia’s startup industry has seen, but we’re also competing against four of Australia’s largest companies who control 80% of our market,” said Skye Theodorou, co-founder of UpCover.

RealVC partner Paul Saunders said: “The $20 billion Australian business insurance industry has remained stubbornly analogue, with the customer deeply unhappy with the experience and coverage. This has provided an enormous opportunity for a digital disruptor to change the paradigm.”

The source: UpCover media release