Augmentum Fintech Plc – Portfolio update and new investment in Insurtech

30 January 2023

Augmentum Fintech plc

Portfolio update and new investment in Insurtech

Augmentum Fintech plc (LSE: AUGM) (the “Company” or “Augmentum”), Europe’s leading listed fintech fund, provides an update on its portfolio and announces that it has led a funding round into Berlin-based cyber insurance platform Baobab, with an investment of 3 million euros.

This is Augmentum’s first investment in the insurtech area and the company’s second investment in Germanyfollowing the investment in Grover, the country’s leading subscription platform for consumer technology.

Baobab (www.baobab.io) is a pioneer in the provision of European cyber insurance for SMEs. With capacity allocation from ZurichBaobab uses a new approach to underwriting, pricing and risk mitigation, partnering with leading SMB cyber security providers to prevent breaches for its insured customers.

Learn more about Baobab and Augmentum’s rationale for investing in the company at https://medium.com/@augmentum/baobab-why-we-invested-14d8d4c9eec4.

Portfolio update

The portfolio now consists of 25 private fintech companies, diversified across fintech verticals, maturity stages and geography. Despite the current volatility in public markets, the portfolio manager believes that the portfolio continues to provide significant growth potential and that the top 5 portfolio companies have an average year-over-year revenue growth of 102%¹.

Find a selection of updates from across the portfolio below:

Tide (www.tide.co, 11.9% of the portfolio²). IN November 2022, the UK’s leading SME banking provider, acquired Funding Options, a leading UK marketplace for SMEs seeking business finance, subject to FCA approval. The combined credit business will give Tide’s 475,000 customers access to a wider range of credit options and create one of the UK’s largest digital marketplaces for SME credit. IN December 2022Tide launched in India with two business banking solutions – Tide Business Account and its RuPay powered Tide Expense Card.

The story continues

Zopa (www.zopa.com, 11.1% of the portfolio²). After the digital bank Zopa became profitable in April 2022just 21 months after securing its banking licence, the company has now passed £3bn in deposits across its Smart Saver and Fixed Term Savings offers.

Gemini (www.gemini.com, 5.3% of the portfolio²). Digital asset exchange and financial services platform Gemini had a product marketing partnership with Genesis Global, a digital asset lending company that has entered Chapter 11 filing in the US. Gemini’s ongoing engagement with Genesis Global is solely as an agent acting on behalf of Gemini users who have outstanding claims against Genesis Global. Augmentum has not yet seen any information that would lead them to believe that their holding value in Gemini requires revision. Augmentum has a level of downside protection on its investment in Gemini and continues to work closely with management.

Anyfin (www.anyfin.com, 3.4% of the portfolio²). The Stockholm-based refinancing platform for consumer debt confirmed in January 2023 that it had completed one 30 million dollars Series C funding round led by Northzone. Augmentum participated along with new investor Citi Ventures and other existing investors. Anyfin’s mobile app has been downloaded more than 1 million times, with more than 500,000 downloads expected in 2022. With this new capital, Anyfin plans to expand across Europe as well as strengthen its product package in existing markets.

Farewill (www.farewill.com, 2.8% of the portfolio²). The digital, all-in-one financial and legal services platform for handling death and post-death services has raised £4.75m with participation from investors including Augmentum and Highland Europe. Farewill was named National Will Writing Firm of the Year for the fourth consecutive year at the British Wills and Probate Awards 2022.

Wayhome (www.wayhome.co.uk, 1.7% of the portfolio²). The UK’s first provider of gradual home ownership, through the combination of capital and rent payments, crossed the milestone of completing the purchase of its first 100 homes. Wayhome also completed an oversubscribed crowdfunding round of £3.2m November 2022.

Tim LeveneCEO of Augmentum Fintech, said: “We are delighted to lead Baobab’s new investment round. We strongly believe that new risks are driving opportunities in insurtech and cyber represents a rapidly growing and underpenetrated market. The team demonstrates strong execution skills in developing a solid product, building out a rapidly growing network of broker partners across Germany and has secured support from a leading level 1 capacity supplier i Zurich. We look forward to working with you Vincenzo Klemm and the entire Baobab team as they build out this new European category leader in cyber insurance for the underserved SME market”.

Notes:

¹ As in 30 November 2022.

² Unaudited portfolio percentage values ​​per 30 September 2022.

Requests:

About Augmentum Fintech

Augmentum invests in fast-growing fintech companies that are disrupting the financial sector. Augmentum is the UK’s only listed investment company focused on the fintech sector in the UK and wider Europewhich launched on the main market of the London Stock Exchange in 2018, giving companies access to patient capital and support, unfettered by conventional fund timelines and giving public market investors access to a largely privately held investment sector during its prime growth period.

Neither the content of any website referred to in this announcement nor the content of any website accessible from hyperlinks is incorporated into, or forms part of, this announcement.