Napo, a London-based insurtech startup founded in 2021 by Jean-Philippe Doumeng and Ludovic Lacay, has secured £12 million in a Series B funding round led by Mercia Ventures. The investment, which brings the company’s total funding to approximately £30 million, will be used to enhance its AI-driven claims processing, expand geographically, and grow its team.
Napo’s digital-first pet insurance platform offers lifetime coverage with unique features such as dental care, behavioural consultations, and 24/7 veterinary access, aiming to address long-standing criticisms of traditional insurers.
The global pet insurance market, valued at $8 billion in 2022, is projected to reach $18.6 billion by 2030, driven by rising veterinary costs and increasing pet ownership rates.
Despite this growth, the industry faces persistent challenges: opaque terms, slow claims processing, and limited coverage have left many consumers dissatisfied. In the UK, only 3% of pets are insured, highlighting a significant gap between supply and demand.
Napo seeks to fill this void with a customer-centric model that prioritises transparency and comprehensive coverage. Its AI-powered system already settles nearly 50% of claims instantly, reducing wait times and improving user experience.
“Our approach isn’t about cutting corners or offering cheap policies that don’t cover what matters,” said Jean-Philippe Doumeng, co-founder and CEO.
“We’ve built Napo to offer proper protection that works, whether it’s dental care, behavioural support, or quick and fair claims handling” .
The company’s Net Promoter Score (NPS) exceeds 70, reflecting high customer satisfaction, while glowing reviews on platforms like Trustpilot underscore its reputation for reliability and innovation.
By controlling the entire value chain, from policy issuance to claims settlement, Napo ensures consistency and quality, setting itself apart from competitors.
Investors have expressed strong confidence in Napo’s vision. Martijn Kleibergen, Investment Director at Mercia Ventures, remarked, “Napo’s approach is exactly what the pet insurance sector needs, a blend of innovative technology, customer care, and long-term sustainability”.
Existing investors, including DN Capital, Companion Fund, MTech Capital, and Helvetia Venture Fund, also participated in the round, signaling widespread belief in the company’s potential.
However, Napo faces hurdles as it scales. Critics argue that its premium pricing may alienate cost-conscious consumers, particularly those accustomed to budget-friendly options available on comparison sites.
While Napo’s model addresses many shortcomings of traditional insurers, affordability could limit its appeal to lower-income households. Furthermore, entrenched players in the market may resist disruption, leveraging their brand recognition and economies of scale to maintain dominance.
