Honey Insurance has agreed a partnership with real estate group McGrath Limited for $6.5 million investment and a customer referral agreement.

McGrath will invest via a Convertible Note which will convert to equity, with an option to redeem at the note’s end 2023 maturity date.

Honey launched in mid 2021, targeting the home and contents insurance market after securing $15.5 million in seed funding from underwriting partner RACQ and other investors, including Mirvac and the founders of Afterpay, Airtasker and Zip, and power firm AGL and homebuilder Metricon which also agreed product distribution offers last year.

Founder and CEO of Honey Richard Joffe says Honey is pioneering proactive technology to reduce risk in Australia’s $10 billion home insurance market. It rewards customers for activating technology with a lower price on their insurance. It gives them $250 worth of technology and ongoing services which it says eliminates avoidable accidents that happen in the home when they sign up for house and contents cover.

“We are thrilled to partner with McGrath who will become a key part of the Honey journey, giving their customers access to a better, smarter deal for home and contents insurance,” Mr Joffe said.

McGrath Estate Agents currently has 108 offices and the firm provides agency sales, property management, mortgage broking and career training services.