ASX-listed agency McGrath has struck a deal with Honey insurance, the RACQ-underwritten start-up that launched last year with the largest seed funding in Australian tech history.
The partnership will see McGrath’s home buyers, renters and landlords referred to the insurance company for their insurance needs, while the real estate network makes a $6.5 million investment in Honey’s future.
Eddie Law, McGrath’s chief executive, said the deal would further enhance McGrath’s digital product offering for the company’s range of clients.
“Honey will give McGrath’s clients access to a unique customer proposition for home, contents and landlord insurance powered by smart, simple technology. This will simplify the insurance process experience for our clients at competitive pricing,” Mr Law said.
“Our investment in Honey follows the strategic move to digitise the Oxygen home loan business. It is a further example of servicing our clients by combining brilliant talent and advanced technology.”
Richard Joffe, founder and CEO of Honey, said they were thrilled to partner with McGrath and intended to provide their customers with “a better, smarter deal for home and contents insurance”.
Only launching in June of last year, Honey made waves during its initial seed round of $15.5 million, funded by the likes of RACQ (who also underwrites the insurance), AGL, Metricon, and Mirvac, alongside personal investments from the founders of Afterpay, Airtasker and Zip.
McGrath’s investment in Honey comes in the form of a $6.5 million convertible note with a maturity date of 31 December 2023. This will either convert to equity at a discount to the company’s market value at Honey’s next qualifying raise or will be redeemed or converted to equity upon maturity.
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Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.