Melbourne-based insurtech Koba has reached a targeted $1 million in new funding, with 358 investors backing the start-up during a crowdsourcing round.

Last week, Melbourne-based Eric Insurance agreed to underwrite Koba’s pay-per-kilometre car insurance product.

“We opened this crowdfund to invite early adopters, smart investors and potential customers to be part of our customer-centric insurance product - and did they come,” Koba Founder Andrew Wong said.

Koba is testing its product and has said it is on-track to launch to the wider market in October.

Koba splits premium payments into two: a fixed premium to cover drivers while parked, and a per-kilometre rate, typically between 3-10 cents, while driving. In real-time, Koba measures the distance driven and only charges drivers by their use.

Koba previously raised $700,000 from angel investors and insurance specific funds, including Hunter Equity Group and Insurtech Gateway.

“The support and funds raised have been incredible; and shows that people are behind insurtechs and ready for our new usage-based approach,” Mr Wong said.