South African digital travel insurance distributor Hepstar has received $2 million in funding from UK-based technology investor Amadeus Capital Partners.
The new funding will help the Cape Town-based company expand its global reach, accelerating its technology development and grow its brand.
Hepstar was founded in 2013 to address the need for e-commerce companies in general, airlines and travel companies in particular, to maximize revenue from ancillaries.
The company has expanded over the last year to include Africa, the Middle East, Europe and Australia. Clients include CarTrawler, South African Airways, ClickBus, Flightsite and Travelstart.
This has been helped by strategic partnerships with some GDSs, as well as insurance companies including Mapfre, Regent, Al Sagr and Orient Sigorta.
Chief financial officer, Brett Dyason, said: “The global airline ancillary opportunity is around $60 billion. We can help our partners make up to 30% of their net revenues from insurance ancillaries.
“We’re extremely pleased about our partnership with Amadeus Capital Partners. They understand our business and vision.
“Hepstar has grown organically to date and we are now anticipating growth of 150% in 2016. This investment will allow us to focus on innovation, sales and local talent acquisition.”
Amadeus Capital Partners investment partner, Andrea Traversone, said: “Amadeus Capital is excited to be involved in Hepstar.“They are solving a real problem regarding insurance distribution during a time when ancillary revenue is becoming increasingly important for e-commerce companies.
“Given the prowess they have demonstrated in this niche we expect they will be a leading supplier in this market in the near future.”