Diesta secures 3.8 million dollars in seed financing

Diesta secures 3.8 million dollars in seed funding, led by FinTech Collective. The company aims to expand its presence in the UK, Europe and the US and modernize payment processes in the insurance industry

London, UK - October 16, 2024 - Diesta, the London-based B2B SaaS company revolutionizing payment processing for the insurance industry, has successfully closed a $3.8 million seed funding round. The round was led by FinTech Collective, a New York-based VC, with participation from Commerce Ventures and existing investors Restive Ventures and SixThirty. This funding round follows a pre-seed of 2 million dollars secured by Diesta just last year, demonstrating the company's strong momentum in scaling its platform in the UK, Europe and the US.

Transforming premium payments in a 1.75 trillion dollar industry

The insurance industry, which processes more than $1.75 trillion in commercial premiums annually, remains highly fragmented and reliant on outdated manual processes. Each insurance policy generates seven times its value in premium payments due to complicated cash flows, and each year the sector loses an estimated $32 billion due to inefficiencies in premium payment allocation. While digitization is slowly facilitating policyholder payments and claims processing, this process does not extend to B2B payments within the insurance industry value chain. The problem is huge and affects all parts of the industry.

Driving innovation in payments in the insurance industry

We have shown that we can bring digital payment innovation to an area that has long been considered an insurmountable burden

Julian Schoemig, CEO Diesta

Julian Schoemig, co-founder and CEO of Diesta, who announced the funding today at the ITC Vegas conference, remarked: "We are tackling one of the insurance industry's biggest back-office problems - premium payments. We've shown that we can bring digital payment innovation to an area that has long been considered an intractable burden. Having worked with agile insurtechs as well as some of the largest brokers and MGAs in the London market, we know that the Diesta platform can deliver significant value to businesses of all sizes. We are thrilled to have such high caliber investors as partners on our growth journey."

Diesta plans expansion and platform enhancements

With this new round of funding, Diesta plans to accelerate its expansion into new geographic markets and insurance types. The company will focus on growing its presence in the UK, Europe and the US. It will also invest in further enhancing the platform to offer even more advanced functionality to insurance teams through AI-driven integrations and embedded fintech partnerships. The funding supports Diesta's ambition to become the preferred payment processing layer for the insurance sector and drive digital transformation in one of the world's most antiquated markets.