Hepstar, a technology company based in Cape Town, specialising in the distribution of travel insurance via third party websites, says it has raised $2 million (R30 million) in a new round of financing.
The funding, from UK-based technology investor Amadeus Capital Partners, will be used to build on Hepstar‘s momentum including expanding its global reach, accelerating technology development and growing 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 global airline ancillary opportunity is around US$60 billion. We can help our partners make up to 30% of their net revenues from insurance ancillaries,” said Hepstar CFO Brett Dyason.
Over the last year the company has grown its presence to include Africa, the Middle East, Europe and Australia. Clients include CarTrawler, South African Airways, ClickBus (including Neredennereye.com), IATI, Flightsite and Travelstart.
“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,” said Dyason.
Amadeus Capital Partners’ investment into Hepstar is provided for by their Digital Prosperity Fund, which is backed by the MTN Group.