Outdoorsy raises $120m to expand insurtech division

US: Global online RV rental and outdoor travel marketplace, Outdoorsy, has announced that it has raised $120 million in equity and debt financing.

The $120 million raise includes a $90 million private placement equity round led by Moore Strategic Ventures, ADAR1 Partners, Monashee Capital, SiriusPoint Ltd and Convivialite Ventures, the corporate venture group of Pernod Ricard. Existing investors  Altos Ventures, iAngels and Greenspring Associates also participated in the round, while Pacific Western Bank provided the $30 million debt facility.

With the reopening of the US economy and the international markets that Outdoorsy serves, the company plans to use the additional capital to drive its growth and expansion of its insurtech business, Roamly.

Jeff Cavins, co-founder and CEO of Outdoorsy, said: “We continue to experience strong growth in both our core business as well as in our Roamly business. Roamly’s digital annual insurance product recently came out of beta in the US.”

Roamly is designed to provide “innovative digital insurance products for travellers and recreational vehicle owners”, eliminating the commercial exclusion clause that traditionally inhibits online listing activity. Roamly insures RVs and campers as ‘rent ready’, potentially marking a new era of economic opportunity for owners of recreational vehicles.

Cavins said: “Before Roamly, RV owners had very few insurance options that would allow them to rent out their RVs without violating the terms of their annual insurance policy. Roamly is solving that problem.

“Customers are embracing outdoor travel at unprecedented levels. Consequently, road trips are surging in interest, and our Roamly products are experiencing strong customer adoption.

“Additionally, this new capital will catalyse Roamly’s expansion and support the launch of Roamly in Europe, as well as aid in the expansion of Outdoorsy’s new accommodations venture with Collective Retreats, a luxurious reimagining of the outdoor accommodations space,” he added.

Roamly’s new insurance products launched in private beta last year and will be marketed to Outdoorsy’s customers and new and existing buyers of recreational vehicles in North America.

Owners in the Outdoorsy marketplace use Roamly to insure their assets for use on Outdoorsy and are now building out fleets to keep up with expanding renter demand.

Global [re]insurer SiriusPoint is partnering with Outdoorsy on the launch of its new insurtech division.

Sid Sankaran, chairman and CEO of SiriusPoint, said: “We are excited to support Roamly and the fast growth the company is experiencing through our strategic partnership. This includes our participation in the company’s equity round and a commercial agreement to support the development of insurance products that serve their customers’ needs.

“Roamly’s market prospects and the speed of the company’s growth are global. The unique approach that Roamly has taken with its product innovation is a first-of-its-kind offering in the global market for recreational assets,” he added.

Steven DiPasqluie, managing director, technology banking at Pacific Western Bank, said: “We have been working with Outdoorsy since the company relocated its global headquarters to Austin, and we are excited to continue the strong collaboration with the company as they continue their rapid global growth.”

Earlier this month, Outdoorsy announced that it would be expanding its outdoor experiences portfolio by partnering with outdoor luxury accommodations operator Collective Retreats, as well as participating in its $23 million Series C funding round.

Through the partnership, the two companies hope to transform the rapidly growing outdoor hospitality market by developing new accommodations and outdoor services. They will also work together to build a suite of offerings designed to cater to road travellers and guests looking for an elevated outdoor accommodation experience.

Prior to this funding round, Outdoorsy had raised $75.1 million. Founded in 2015, the company operates in the United States, Canada, Australia, France and the UK, and wants to mobilise the 54 million-plus RVs that currently remain idle.

A number of other RV rental marketplaces, including RVshare, RVezy and Cabana, have also secured significant funding in recent times, highlighting the level of interest in the motor homes and outdoors travel segments in general.