Insurtech Ubi Technology has raised new capital from a group of local and overseas investors to support the expansion of its app-based UbiCar motor insurance business.

The Sydney-based start-up has declined to reveal the size of the investment, but says the funding from the new shareholders is a vote of confidence in its business model.

“We are so happy this year to get this investment,” co-founder Carolyn Batterton told insuranceNEWS.com.au. “We are here to grow. They are going to help us grow a lot.”

Singapore’s Vulpes Investment Management, one of three investors that supported the capital-raising, says the insurtech’s UbiCar product offers the “most exciting opportunity” in the field of telematics-driven motor insurance.

“UbiCar is our first investment in Australia,” Head of Venture Investing Field Pickering said. “It was very clear to us that UbiCar is likely to be the leading telematics insurance specialist for the motor industry, across not only Australia but also southeast Asia."

Ms Batterton says UbiCar’s pay-per-kilometre product has enjoyed strong take-up since its launch in April, when car usage declined significantly because of the pandemic lockdown. The product was originally set to debut next month but the business decided to bring forward the launch.

The app-driven comprehensive motor cover charges a base monthly fee plus a few cents for every kilometre clocked. Distance travelled is monitored in real-time through an UbiCar device that connects the vehicle to the app in real-time.

“It’s very popular and very useful for people who are not driving much,” Ms Batterton told insuranceNEWS.com.au. “People just pay the base price and it’s only cents per kilometer after that.”

The other comprehensive motor offering from the two-year-old business charges premiums based on a driver’s on-road behaviour and driving frequency.