Croatia's Tus & Andrijanic law firm, acting with New York's Wuersch & Gering, has advised Budapest-based Lead Ventures Plc. on it EUR 3 million acquisition of an unspecified stake in insurtech start-up Amodo d.o.o.
Amodo, which was founded in Zagreb in 2013, primarily develops telematic platforms for insurance companies that gather behavioral data, thus facilitating the market entry of innovative insurance products such as usage-based insurance. According to a Lead Ventures press release, "Amodo has developed a Connected Insurance platform supporting the introduction of Usage Based Insurance products, currently used by several prominent insurance companies worldwide. The Connected Insurance platform developed by Amodo can alter the lives of drivers. By downloading an application, drivers can get insights on numerous driving-related data (speed, cornering, accelerating and braking data, etc.). An analytical software processes the collected information and sends them to the driver who will precisely understand how safely they drive and how energy efficient they are. Drivers also get awarded on tweaking behaviors that make them safer and more energy efficient."
"Insurance companies have the most interest in launching these types of applications," Lead Ventures continues, "as driving behavior is the determining factor in assessing the risk of securing the vehicle, driver and passengers. This means that drivers can get significant savings based on their driving behavior. Depending on the insurance company that launched the application, there is the possibility of receiving just in time offers for insurance products that might benefit the driver. Products offered span from automatically offered short term travel insurance while approaching the country border to parts of comprehensive insurance necessary for specific road conditions the driver is frequently traveling on."
"We made the decision to invest a total of EUR 3 million in the company for a 3-5 year period," explained Balazs Haszonics, CFO of Lead Ventures, Amodo’s newest board member. "Amodo is a swiftly growing, innovative company, which has already proven itself in the market of usage-based insurance. It has several major clients, such as AIG, Porsche Bank, P&V and Triglav. The company is now ready to enter new markets and expand its client base with proper capitalization. Amodo also needs to grow its IT development capacities, , thanks to the investment of Lead Ventures, they will establish their new development center in Budapest."
"In the past six years, Amodo has created over 25 products in 18 countries on five continents for major international insurance companies," stated Marijan Mumdziev, CEO of Amodo. "We plan to dynamically grow in the coming years and want to quadruple our client base by 2023. We found our ideal partner for our technological and business development and growth: Lead Ventures has significant financing strength and extensive business contacts in the region."