Lead ventures invests in a company formulating the future of car driving

Lead Ventures is undertaking a new EUR 3 million investment in the CEE region. The Budapest based venture capital firm, specializing in scale-up financing, is assisting the growth of Amodo, an insurtech company influencing the lives of drivers and the future of insurance companies. Funds will be used for further scale-up activities, as well as further development of Amodo’s product. Amodo has developed a Connected Insurance platform supporting the introduction of Usage Based Insurance products, currently used by several prominent insurance companies worldwide.

The Connected Insurance platform developed by Amodo can alter the lives of drivers. By downloading an application, drivers can get insights on numerous driving-related data (speed, cornering, accelerating and braking data, etc.). An analytical software processes the collected information and sends them to the driver who will precisely understand how safely they drive and how energy efficient they are. Drivers also get awarded on tweaking behaviors that make them safer and more energy efficient.

Insurance companies have the most interest in launching these types of applications, as driving behavior is the determining factor in assessing the risk of securing the vehicle, driver and passengers. This means that drivers can get significant savings based on their driving behavior. Depending on the insurance company that launched the application, there is the possibility of receiving just in time offers for insurance products that might benefit the driver. Products offered span from automatically offered short term travel insurance while approaching the country border to parts of comprehensive insurance necessary for specific road conditions the driver is frequently traveling on.

The market of usage-based insurance policies shows great year to year growth globally. Currently, clients have purchased over 25 million contracts for 417 types of usage-based insurance products in 55 countries. Most of the major insurance companies launched or plan to launch similar services. According to predictions, by 2025, such products will provide USD 95 billion in revenues, with an 18 percent estimated annual growth.

Lead Ventures was launched in 2018 and intends to invest EUR 100 million in Hungary and the CEE region. Lead Ventures saw potential in the US/Croatian Amodo because of the rapidly expanding market. „We made the decision to invest a total of EUR 3 million in the company for a 3-5 year period. Amodo is a swiftly growing, innovative company, which has already proven itself in the market of usage-based insurance. It has several major clients, such as AIG, Porsche Bank, P&V and Triglav. The company is now ready to enter new markets and expand its client base with proper capitalization. Amodo also needs to grow its IT development capacities, , thanks to the investment of Lead Ventures, they will establish their new development center in Budapest." – explained Balázs Haszonics, CFO of Lead Ventures, Amodo’s newest Board member.

Amodo was founded in Zagreb, Croatia in 2013. Amodo primarily develops telematic platforms for insurance companies that gather behavioral data, thus assisting the market entry of innovative insurance products such as usage-based insurance. The platform allows insurance companies to have a unique channel which allows them to put their customers in the center and offer personalized offerings based on behavior. So far, the platform has processed data of over 1 billion kilometers covered by about 1.5 million cars.

"In the past six years, Amodo has created over 25 products in 18 countries on five continents for major international insurance companies. We plan to dynamically grow in the coming years and want to quadruple our client base by 2023. We found our ideal partner for our technological and business development and growth: Lead Ventures has significant financing strength and extensive business contacts in the region” – stated Marijan Mumdziev, CEO of Amodo.

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