Arma Karma gets ‘stamp of approval’ as it seals £1.5m in funding round

Arma Karma has received a “great stamp of approval” as it secured more than £1m in its latest funding round, according to chief executive and co-founder Ben Smyth.

The insurtech MGA yesterday (17 April 2023) completed a £1.5m seed funding round led by Ascension Ventures.

Smyth told Insurance Times there had been “a lot of interest” in the round of funding and that it was a “great stamp of approval for what Arma Karma is doing in the industry”.

“This is all about biting the poverty premium and the additional costs for those in less advantaged positions to pay for access to financial services, which is something really close to our hearts,” he added.

The popularity of the round also led to the insurtech opening an overfund for the rest of the money to go in – as it stands £275k has been put in.

“It’s something that we prepared for as there was a lot of interest in this initial round,” Smyth said.

Projects in the works

With a monthly insurance subscription, Arma Karma provides contents cover for the damage, loss and theft of personal possessions such as airpods, tablets, smart watches, phones, laptops, jewellery, eyewear, cameras and bikes.

It predominantly caters to an age range between 18-25.

Smyth said this age group had been considered high risk for insurers and that there was a protection gap in this area.

“It’s obviously a heavily risky area in terms of possessions, especially around loss and damage,” he added.

Following the funding round, the business is now looking to take on several major projects in the coming months, with it currently having several in the works.

“We have a few funky things in the works with academics to cut down on fraud and ensure we can charge customers a true and fair price,” Smyth said.