The startup that puts AI into your next flight has just raised $50 million
Israeli startup Faye, which offers a smart travel insurance system, has raised $50 million in a Series C round. The company plans to use the funds to automate insurance claims processing using AI.
After planning, packing, and navigating the airport, the last thing you want to deal with is flight cancellations, lost luggage, or an emergency search for a doctor in a foreign city. The Israeli startup Faye is developing a system designed to replace traditional travel insurance with a smarter solution that accompanies you throughout your entire journey. On Thursday, the company announced a new funding round of $50 million, intended to make the claims approval process autonomous.
Not just a policy
Faye's platform aims to offer more than traditional travel insurance. Instead of just selling a policy, the app allows you to purchase coverage, submit claims digitally, and receive refunds directly to the company's digital wallet while abroad. At the same time, the system offers additional services such as access to telemedicine, eSIM cards, flight disruption alerts, and airport lounge access.
In a conversation with Geektime, Elad Schaffer, co-founder and CEO of the company, explains that the idea is to evolve from an insurance provider into an "active partner" for the trip. "In recent years, we have added pet coverage, 'cancel for any reason' coverage, rental car coverage, and more," he says.
Through its app, the company enables flight tracking, secure storage for travel documents, and recommendations for local services. Schaffer notes that while the company previously offered its services as infrastructure for others (B2B2C), it now offers services directly to consumers (B2C) as well. However, he says that about 70% of sales are still made through partners, with the company recently surpassing $100 million in annual sales.
Solving more than half of claims autonomously
This Series C funding round of $50 million brings the company's total investment to $100 million. The round was led by the Madrona fund with participation from BRM and existing investors including Portage, F2 Venture Capital, Viola Ventures, and Lumir Ventures. The company, founded by Elad Schaffer and Daniel Green, currently employs 91 people in Tel Aviv and another 88 in the United States.
According to Faye, the capital raised will be used to accelerate the development of its artificial intelligence models. The company expects that by the end of the year, its technology will resolve more than half of insurance claims autonomously and without human intervention.
