Honey adds McGrath to growing list of investors
Honey adds McGrath to growing list of investors
27 January 2022
ASX-listed real estate group McGrath Limited has invested $6.5 million in Honey Insurance and says the insurtech will provide its clients with innovative home and contents cover.
The partnership with McGrath, which includes a customer referral agreement, is Honey’s third after power firm AGL and homebuilder Metricon agreed similar product distribution offers last year.
Honey launched in mid 2021, targeting the home and contents insurance market after securing $15.5 million in seed funding from AGL and Metricon, as well as underwriting partner RACQ and other investors including Mirvac and the founders of Afterpay, Airtasker and Zip.
McGrath CEO Eddie Law says the new Honey partnership will give his clients access to a unique proposition for home, contents and landlord cover powered by smart, user-friendly technology.
“This will simplify the insurance process experience for our clients at competitive pricing,” he said.
McGath will invest $6.5 million via a Convertible Note. This will either convert to equity at Honey’s next raising at a discount to market value of Honey, or McGrath can choose to redeem or convert to equity at the note’s end 2023 maturity date.
Honey rewards customers for activating technology with a lower price on their insurance. It gives them $250 worth of technology and ongoing services which it says eliminates avoidable accidents that happen in the home when they sign up for house and contents cover.
Founder and CEO of Honey Richard Joffe says Honey is pioneering proactive technology to reduce risk in Australia’s $10 billion home insurance market.
“We are thrilled to partner with McGrath who will become a key part of the Honey journey, giving their customers access to a better, smarter deal for home and contents insurance,” he said.
McGrath Estate Agents currently has 108 offices and the firm provides agency sales, property management, mortgage broking and career training services.
