Conversational AI insurtech PeppercornAI raises £3.25m

Insurtech firm PeppercornAI has successfully secured £3.25 million in its recent funding round.

Wealth Club contributed £1.9 million to this round, which also saw participation from high-net-worth individuals, along with existing investors EHE Capital and Angels Invest Wales. The funding round was notably oversubscribed, despite a 34% decline in investment into UK fintech and insurtech sectors last year.

PeppercornAI, recipient of the Celent Model Insurer Award for Digital and Emerging Technology, employs conversational AI to streamline operational costs, enhance risk protection, and provide an improved customer experience in purchasing and managing insurance policies.

Last year, the company unveiled its SaaS platform, Pipr, aimed at supporting the motor industry, which is currently facing increasing cost pressures. Pipr facilitates the swift digital transformation of the insurance sector, enabling providers to achieve lower operating costs and enhanced risk management.

The freshly raised funds will be allocated towards further development of the company’s conversational AI platform and to cater to the growing B2B demand both in the UK and internationally.

Nigel Lombard, CEO and Founder of PeppercornAI commented: “The insurance industry has barely changed since insurance started being sold online thirty years ago. Technology, specifically AI, has the potential to completely change the way consumers buy and manage their insurance policies and can also deliver significant benefits to providers at the same time.

“However, as an industry that’s historically been slow to adopt technology, insurance providers are worried about keeping up with the pace in which AI is developing. That’s where PeppercornAI comes in. Our team of insurance experts has built and proven a new model that allows providers to unlock the benefits of the technology now, can be integrated seamlessly and quickly, and ensures their businesses aren’t left behind. My thanks for the continual support of EHE Capital, to Angels Invest Wales and for the brilliant team at Wealth Club for making the raise so successful.”

Gayle Bowen, Head of Direct company investments at Wealth Club said: “We believe PeppercornAI has the potential to transform the insurance industry and it became clear to us that Nigel and his team were the people to do it given their deep sector knowledge and network. The fact that they were able to prove the technology works, demonstrating tangible results and achieving industry-leading metrics significantly contributed to their success in securing investment. 

 “The Company looks well positioned to grow its B2B offering, which is its next big step.  For many early-stage companies, it’s been one of the most difficult periods to raise capital - but not for PeppercornAI. Wealth Club members were quick to spot this potentially stand out company and within a month the round was heavily oversubscribed.”

Guy Remond, Founder of EHE Capital, said: “To raise £3.25 million in the current climate is a glowing testament to the strength of the PeppercornAI team and their mission to bring substantial efficiencies to administering insurance policies using their AI-powered platform, Pipr.”

Tom Preene, operations manager for Angels Invest Wales, said: “We’re really pleased to have joined fellow investors linked to Angels Invest Wales in backing PeppercornAI. By working with lead investors, we can ensure a strong impact for our investment and leverage the Wales Angel Co-investment Fund to match-fund deals like these.

“PeppercornAI’s tech has some fantastic potential, and they’re an excellent example of a Welsh businesses providing cutting-edge solutions in the traditional business sphere.”