Functional Finance Secures $20M in Series A Funding

Functional Finance, an emerging software platform for financial operations or as we better understand in the short form FinOps, has closed its Series A round with $20 million, backed by Walkabout Ventures and Munich Re Ventures and the founder of Corvus Insurance, Phil Edmundson.

The funding comes after the company has experienced exponential growth over the last year, with the company’s premium payment volume increasing by 2,500% y-o-y.

Functional Finance’s platform is proving popular with managing general agents (MGAs), insurance companies, and wholesalers that need to manage processes such as invoicing payments and reconciliations.

Rashmi Melgiri, CEO and co-founder of Functional Finance and former co-founder of CoverWallet with Functional Finance President Jim Ermilio in an official press release said:

“We are incredibly grateful for the continued support from our investors, this funding will allow us to accelerate our product development and invest in additional strategic hiring for engineering, product development, customer success, and operations. Ultimately, this funding will enable Functional Finance to deliver even more value for our customers and the industry.”

The latest funding round is expected to drive the company’s growth; the firm intends to improve products and fortify its staff in engineering, customer success, and operations departments. The idea is to deliver even more value to the insurance industry by automating back-office functions and enabling companies to concentrate on value creation and risk management.

Functional Finance came earlier with $8 million in seed funding, which was invested by leading investors such as New Enterprise Associates and Altai Ventures.

As it continues to expand, the company is well-placed to become one of the leaders in the process of transforming the financial processes in the insurance sector.