In a significant development for the luxury goods sector, Paris-based insurtech startup Grace has successfully raised €5.9 million in seed funding. This investment round was spearheaded by FinTech Collective and Speedinvest, with additional participation from Firstminute Capital, Kima Ventures, Bpifrance, and notable individual investors such as Laurent Ritter (Founder of Voodoo), Didier Valet (former Managing Director at Société Générale), Eric Mignot (CEO of +Simple), Maxime Brousse (CEO of Selency via Sequoia scout program), Josef Bovet (via a16z scout program), Martin Hartley (COO of PURE Insurance), and Thomas Clozel (CEO of Owkin).
Grace, founded in 2022 by President Lou Dana, CEO Quentin Roy, and CTO Martin Lenweiter, aims to bridge a critical gap in the luxury market by offering comprehensive protection against theft and loss for high-end products. The company’s innovative approach enables luxury brands to provide their clients with seamless insurance coverage, activated automatically at the point of purchase. This initiative not only enhances customer experience but also fosters deeper brand loyalty.
The core of Grace’s offering is its AI-powered platform, which simplifies the reporting and management of claims related to theft and loss. This technology-driven solution ensures a swift and efficient process, allowing clients to report incidents in just a few clicks. The platform’s design emphasizes user-friendliness and aligns with the aesthetic and functional standards expected by luxury clientele.
A key aspect of Grace’s model is its partnership with leading luxury Maisons and global insurer Chubb. This collaboration is set to protect over 200,000 luxury items by the end of 2025, marking a significant milestone in the company’s growth trajectory. By integrating with Chubb, Grace leverages established insurance expertise to offer robust and reliable coverage to its clients.
The recent funding will be instrumental in accelerating the development of Grace’s proprietary technology, enhancing operational capabilities, and structuring its international expansion. Additionally, the company plans to recruit top talent to support this growth, ensuring that it remains at the forefront of innovation in the luxury insurance sector.
Grace’s service model is designed to be both innovative and user-centric. Clients can report incidents through a brand-customized platform, ensuring a seamless and fast experience. The company commits to resolving incidents within a few business days, allowing clients to quickly regain peace of mind and confidence in their luxury purchases. Furthermore, Grace’s model emphasizes reinvestment in the brand, ensuring total satisfaction and increased loyalty among clients.
One of the standout features of Grace’s offering is its worldwide protection. The company is the only model that allows luxury houses to offer a protection service globally, with coverage in over 190 countries. This extensive reach ensures that clients can enjoy their luxury items with peace of mind, regardless of their location.
The luxury goods market has seen a significant increase in theft incidents in recent years, with reports indicating that the number of stolen luxury goods has tripled. This trend has placed additional pressure on fashion houses to find effective solutions to protect their products and maintain customer trust. Grace’s innovative approach addresses this challenge by providing a seamless and efficient insurance solution that aligns with the high standards of the luxury industry.
Convincing luxury brands to adopt new technology can be challenging, as they often strive to maintain control over their products and customer experience. However, Grace’s offering goes beyond mere protection; it elevates the brand by enhancing the post-purchase experience and strengthening customer relationships. By integrating Grace’s solution, luxury brands can offer an added layer of service that resonates with their clientele and reinforces their brand promise.
The competitive landscape for consumer goods insurance includes companies like Zing Cover, which also provides specialist insurance for luxury items. However, Grace differentiates itself by standing at the intersection of embedded insurance, luxury services, and post-purchase protection. This unique positioning allows Grace to offer a comprehensive solution that addresses the specific needs of luxury brands and their clients.
The fresh capital from the seed funding round will enable Grace to scale its operations across Europe and expand its team, particularly in product engineering. The company’s ambitious goal of covering more than 200,000 luxury items by the end of the year underscores its commitment to becoming a leader in the luxury goods insurance market.
In conclusion, Grace’s successful seed funding round marks a significant step forward in the evolution of luxury goods insurance. By combining cutting-edge technology with a deep understanding of the luxury market, Grace is poised to redefine the standards of product protection and customer experience in the industry.
