Ondo’s £815k fundraise gives insurtech ‘additional firepower’

London-based insurtech Ondo will have “additional firepower” to grow after raising £815k from an overfund capital raise and subscription, according to chief executive Craig Foster.

The company, which announced the fundrasier last week (12 May 2023), secured the funds after being approached by a major shareholder.

Ondo revealed to Insurance Times that the shareholder wanted to raise money to help “rapidly increase the deployment pipeline” of its LeakBot product, which is designed to reduce water damage claims costs.

Foster also told Insurance Times that the funds raised would provide ”additional firepower to accelerate client deployments and to continue the rapid scaling of the business”.

“The decision to raise funds for Ondo was initiated by a shareholder who had previously invested in the company,” he said.

“Recognising the potential for significant growth on the horizon, the board of directors welcomed this show of support and announced a small fundraise.”

Well positioned

The recent overfund was for 6.8 million new shares priced at 12p each – the insurtech’s current stock price stands at 15.95p, up by 14% since the previous financial year.

Included in the fundraise was non-executive chair Mark Wood – who bought 133,500 shares – and non-executive director Andy Morrison, who purchased 200,000 shares.

Ondo’s chief financial officer Kevin Withington also bought 20,000 shares.

Foster added: “The additional working capital will be utilised to invest in key areas such as manufacturing, stock inventory and device deployment to ensure that the company is well-positioned to capitalise on the upcoming opportunities and maintain its competitive edge in the market.

“We are very pleased with the development of the business, which has met and then exceeded expectations set at the time of the RTO [recovery time objective] and we are delighted with the strong support of existing shareholders in this fundraising.”