National Bank Reinvests in Walnut, Which Secures $4.6 Million for Embedded Insurance Growth

Toronto-based Walnut Insurance has successfully secured $4.6 million CAD in new funding to assist insurers, brokers, and enterprise businesses in offering embedded insurance products. In an interview with BetaKit, co-founder and CPO Adrien Niblock emphasized the startup's progress in aligning insurance and distribution partners while making significant strides into the enterprise market, which necessitates further investment in both sales and engineering.

As Walnut experiences heightened interest from insurers eager to engage in embedded insurance, Niblock noted the company’s commitment to "platforming" its services. "We’ve been developing all the necessary components," he explained. "We’re evolving into a platform that allows insurers to transform their products into APIs for distribution through partners. We’re shifting from merely matching insurance companies with partners to becoming more of a technology player," he added.

Founded in 2020, Walnut connects insurers with distributors and provides the technological framework for embedding insurance directly into the products and platforms of enterprise businesses and financial institutions. This approach helps clients decrease marketing expenses and enhance distribution. Established competitors like Bolttech in Singapore and Cover Genius in New York offer similar solutions.

Niblock believes in the future of embedded insurance: “Our goal is to lay the groundwork for embedded insurance and to be part of its eventual adoption. It’s not a question of 'if,' but 'when,' as it benefits all parties involved.” Walnut's recent funding round, which was entirely equity-based and primary, closed in April and was led by NAventures, the venture arm of the National Bank of Canada, which also co-led Walnut’s $4-million CAD seed round in late 2022. NAventures principal James Povitz expressed continued confidence in the startup, stating, “Our ongoing investment and partnership reflect our confidence in their vision and execution.”

The funding round also garnered ongoing support from Highline Beta, as well as contributions from several new investors, including Telus Global Ventures, Diagram Ventures, and Portage Ventures. With this latest injection of capital, Walnut's total funding has now reached approximately $10 million, a significant milestone for the startup.

This fresh capital will be instrumental in advancing Walnut's strategic objectives. The company plans to enhance its platform further, incorporating new features and capabilities that will improve user experience and streamline operations for its clients. Scaling its operations is also a priority, enabling Walnut to meet the growing demand for embedded insurance solutions in various markets. Additionally, Walnut aims to expand its engineering team, which is crucial for driving innovation and ensuring that the company remains competitive in the evolving insurtech landscape. By bringing in top talent, Walnut can accelerate its product development and improve its technological infrastructure.

Furthermore, the startup is looking to forge new partnerships that will broaden its distribution network and enhance its service offerings. By collaborating with more insurers and financial institutions, Walnut hopes to create a more integrated ecosystem for embedded insurance, ultimately benefiting all stakeholders involved. In summary, this funding round not only strengthens Walnut's financial position but also lays the groundwork for its future growth and innovation, positioning the company to capitalize on the burgeoning embedded insurance market.