Faye secures further $50M funding to 'double down' its AI capabilities

Capital will go into AI and global expansion

AI-powered platform for travel protection firm, Faye, has announced it has raised $50 million USD (£37.09 million) in Series C funding.

The round was led by Madrona, one of Amazon's early investors, with participation from BRM and existing investors Portage, F2 Venture Capital, Viola Ventures and Lumir Ventures, bringing the company’s total funding to $100 million to date.

The InsurTech firm, which has become the fastest-growing and highest-rated travel insurance provider in the US in four years, has done very little in Europe and other markets outside of North America so far but has plans to expand across markets more with this new investment.

Using the capital, the next phase of growth for the business will see it "doubling down" on its AI to make underwriting, traveller assistance and claims faster.

It will also use it to grow partnerships with OTAs, airlines, cruise lines and other travel brands on top of the expansion into new markets. 

Faye said it expects by year end for "AI to resolve more than half of all claims autonomously, with 75% of remaining claims completed on first touch".

The investment will also expand Faye’s travel fintech capabilities, building on Faye Wallet’s success to make it more cost-effective for travellers to manage money throughout their journeys while also accessing the resources they need when navigating stressful moments away from home.

The company which has had quite the year already, opening its new US headquarters in Richmond, Virginia, and it has been recognised for its app as a TIME Best Invention.

Elad Schaffer, co-founder and CEO, said: “Travellers and travel distributors deserve more than traditional protection - they deserve a platform that anticipates their needs and supports them throughout their journey. 

"Over the past year, we’ve done just that while also doubling our revenue and strengthening our position as the leader in AI-powered travel protection. 

"This milestone represents our commitment to continuing that innovation, expanding globally and building the future of travel care for millions of travellers and partners worldwide.”

Steve Singh, Madrona managing director, added: "I've spent my career building in travel, and generational founders in this space are rare. The Faye team is that calibre. 

Travel is finally being rebuilt around the traveller, and Faye is emerging as the brand people reach for to take care of all their needs before, during, and after their trip. I've rarely seen a team this well-matched to the moment, and I'm excited to be in their corner.”

Chris Picardo, partner at Madrona, said: "The best insurance platforms of the future will excel at more than pricing risk - they will win by owning the customer relationship end to end for a magical experience.

"Elad is a generational founder and his amazing Faye team is building exactly that: a world class product, offering the best pricing and coverage for the modern traveller, and standing behind them when something goes wrong. It’s exciting to back Faye and their vision to provide the best traveller care in the world," he said.

"We're thrilled to lead this round and to partner with founders rethinking what the travel experience feels like."