SA fintech startup secures $2million funding
Digital insurance distributor Hepstar has received $2million in funding from UK-based technology investor Amadeus Capital Partners. With the new funding the company will be expanding its global reach, accelerating technology development and growing its brand.
Hepstar management team: Stephen Booysen, Heinrich Brand, Claudia Snyman, Stephan Ekbergh, Brett Dyason
Hepstar was founded in 2013 to address the need for e-commerce companies, airlines and travel companies in particular, to maximize revenue from ancillaries. “The global airline ancillary opportunity is around $60 billion. We can help our partners make up to 30% of their net revenues from insurance ancillaries”, said Hepstar CFO Brett Dyason.
Over the last year the company has grown its presence to include Africa, the Middle East, Europe and Australia. Clients include CarTrawler, South African Airways, ClickBus (including Neredennereye.com), IATI, Flightsite and Travelstart. Attaining this rapid growth is due to Hepstar’s strategic partnerships with key Global Distribution Systems, as well as insurance companies including Mapfre, Regent, Al Sagr and Orient Sigorta.
Encouraging emerging market growth
Amadeus Capital Partners’ investment into Hepstar is provided for by their Digital Prosperity Fund, which is backed by the MTN Group. This fund assists growth companies to develop online and mobile applications in emerging markets such as Africa, the Middle East, Asia and Latin America. This made Hepstar a prime candidate due to their focus in expanding their existing reach in Africa and the Middle East while simultaneously developing Latin America.
“We’re extremely pleased about our partnership with Amadeus Capital Partners. They understand our business and vision,” said Brett Dyason. “Hepstar has grown organically to date and we are now anticipating growth of 150% in 2016. This investment will allow us to focus on innovation, sales and local talent acquistion.”
“Amadeus Capital is excited to be involved in Hepstar,” said Andrea Traversone, investment partner at Amadeus Capital Partners. “They are solving a real problem regarding insurance distribution during a time when ancillary revenue is becoming increasingly important for e-commerce companies.”
