New York-based insurtech startup Kalepa has raised $75 million in Series B funding at a valuation of $470 million. The funding round was led by Updata Partners, with participation from existing investors IA Ventures and Inspired Capital. With this latest investment, the company has raised a total of $91 million.
The new funding follows Kalepa’s $14 million Series A round in 2021, which was led by Inspired Capital with participation from IA Ventures.
The company will use the fresh capital to expand its AI-powered insurance products, enter new markets and grow its workforce. Kalepa also plans to double its team during 2027 as it expands its operations.
Kalepa co-founder and CEO Paul Monasterio said, “Insurance runs on the judgment of experienced professionals, and our Professional Grade AI is held to that same standard. That means insurers can look at each task and ask who does it best, and at what cost. Sometimes that’s AI and sometimes it’s a person. When insurers get that division of labor right, their people’s attention can go to the complex risks, close calls, and broker relationships that need it. This funding lets us bring Professional Grade AI to more of the work insurers do, so they have that choice across the entire value chain.”
Founded in 2018, Kalepa develops AI technology that helps insurance companies improve underwriting, pricing, operations and portfolio management. Its platform helps insurers analyse risks, process quotes faster and make better business decisions while keeping human professionals involved in important decisions.
The company has reported strong growth, with both revenue and its customer base tripling over the past year. It also says it has remained cash flow positive for more than two years and now operates across 10 countries.
Kalepa’s technology is already being used by insurance companies and managing general agents (MGAs), including W. R. Berkley, Bowhead Specialty and AmRisc.
According to the company, customers using its platform have reported 30% to 60% more premium per underwriter and a 58% reduction in quote processing time. The platform has also helped some customers improve their combined ratios and increase quote-to-bind rates.
The company has also strengthened its leadership team with the appointment of Garrett Schlesinger as Chief Technology Officer. He previously spent 12 years at financial technology company Affirm, where he contributed to building its real-time underwriting engine.
Founded by former Facebook engineer Paul Monasterio and Daniel Hillman, Kalepa aims to help insurers manage complex workflows, improve efficiency and make faster decisions through artificial intelligence. Its latest funding will support the company’s expansion across the global insurance technology market.
