Axle Raises $4 Million for Consumer Permissioned Insurance Data – Finovate

• Axle raised $4 million in a Seed round led by Gradient Ventures.
• Today’s investment brings the Atlanta, Georgia-based company’s total funding to $4.5 million.
• Axle is bringing consumer permissioned data to the insurance vertical.

Consumer permissioned insurance data company Axle has raised $4 million this week for a tool it calls “the Plaid for insurance.” The Seed round brings the Atlanta, Georgia-based company’s total funding to $4.5 million.

Gradient Ventures led the round, which also saw contributions from existing investor Y Combinator, Soma Capital, Contrary Capital, Rebel Fund, BLH Ventures, and others.

“Axle’s innovative approach to insurance and commitment to a personalized customer experience has already demonstrated early traction and validates their potential to make a significant impact in the market,” said Gradient Ventures Partner Wen-wen Lam. “We look forward to supporting the team and their mission to democratize access to insurance data.”

Axle was founded in 2022 to offer a universal API that allows individuals to connect their insurance account to companies seeking to verify their insurance. The tool enables rental car companies, lenders, and gig services to quickly obtain proof-of-insurance, as long as they have permission from the end user.

“We plan to use the funds to grow our team, enabling us to service new and existing demand from our fast-growing list of customers, strengthen our carrier network, and expand into new markets,” the company said in a blog post.

The company’s current carrier network includes hundreds of insurance carriers and supports policy information including term, insureds, premiums, third parties, and more.

Consumer permissioned data is widely used across the financial services industry– from credit scoring to payment processing and personalized marketing. Plaid— the company to which Axle is comparing itself– may be the most well-known fintechs facilitating consumer permissioned data. The California-based company uses consumer permissioned data to facilitate the data exchange between financial institutions and third-party applications.

Photo by Engin Akyurt

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