As previously reported, Honcho is described as a reverse-auction marketplace where insurers enter a competitive real-time bidding process in order to offer the best price to customers.
The company aimed to launch in Summer 2018 with nearly 20 insurance brands that will pay a £1 fee to bid rather than the average £50 commission charged by comparison sites. Honcho has signed up more than 10,000 consumers, which is notably growing monthly and 14 insurers to its platform.
“We have developed the first online reverse auction marketplace for financial services. A reverse auction is where you, the consumer, receive bids and become the focus of the auction. Companies will compete against each other to win your custom which is how we think it should be! It’s disruptive and innovative, and we’re going to start by launching into the car insurance market in 2018.”
Honcho raised £829,370 through its previous equity crowdfunding campaign on Crowdcube less than two years ago. The company revealed that since the closing of that funding round it has received FCA authorization, along with raised £950,000 from Maven Capital and others. Honcho is offering 9.21% in equity at a £6,899,999 pre-money valuation.
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