PremFina gears for growth with investment in tens of millions.
Investors have given the tech-led premium finance provider a cash injection in a move that sees it set to challenge Close Brothers and Premium Credit for a top three position in the UK.
PremFina has received a significant cash injection from a variety of institutional investors in order to help the provider drive scale, expand internationally and aggressively develop its UK proposition, Insurance Age can reveal.
It is understood that the investment runs into tens of millions of pounds and will allow the business, which describes itself as a tech disruptor in the premium credit space, to challenge traditional finance organisation such as Close Brothers Premium Finance and Premium Credit.
The change will see current CEO and chairman, Bundeep Singh Rangar, take on a group role within the business to ensure the proposition is exportable and drive growth in international markets. As part of this, he will also develop fresh products and focus on innovation.
He commented: “We’re delighted to have secured substantial investment to support the next phase of our growth. We intend to invest in the UK as well as internationally, where we believe there’s a huge opportunity to replicate the strength of our business model.
“We remain fully committed to deliver choice, flexibility, and excellent service for our partners.”
It is believed Singh Rangar will remain the largest investor in the business alongside the private institutional investors.
When the business launched in 2015, it was described as the ‘Uber of premium finance’. Insurance Age believes it now works with 140 brokers across the UK and processes the majority of customer queries using its specially- developed AI chat bot.
In 2019, a series of expert brokers joined the PremFina advisory board. These included Mark Cliff, former Brightside CEO, and Lisa Powis, who founded Fresh Insurance. Additionally, former Markerstudy group commercial director, Martyn Holman, took a seat on the advisory board in April 2019.
The Insurance Age article can be found here.