Cachet in a €5.5M seed funding round led by Truffle Capital.

Cachet, a Talinn, Estonia-based operator of a financial services marketplace for gig workers, raised a seed funding round closed at getting into a €5.5 million ($5.8 million).

The money was raised from investors led by the French VC Truffle Capital, joined by Icebreaker, and Uniqa Ventures.

Proceeds will be used for product developement and for further European business coverage.

Cachet, founded in 2018 and led by CEO Hedi Mardisoo, built a usage-based insurance platform that acts as a financial services marketplace, as it provides price and custom coverage by aggregating cross-market data. The service consolidates the data from gig platforms and uses it in order to enable businesses like insurance companies to sell better priced and personalised coverage based on the gig workers’ real work hours.

The company's users include the drivers of ride-hailing platforms like Uber, Bolt and Yandex, which sign up for packages providing third-party liability, motor and micro-mobility insurance, and personal health and accident coverage. It says it works with 12 insurance underwriters including carriers like Allianz, PZU and VIG Group and currently operates in Estonia, Latvia, and Poland, while also serving customers in the UK, Lithuania, and Finland. In addition to Bolt and Uber, it also works with platforms like Upsteam, Citybee and Cleanify. In Estonia, the company’s first market, Cachet holds 40% of the app-taxi segment’s market share.

Prior to this deal, Cachet secured €1.1M in a round led by Icebreaker in 2020 and raised about half a million dollars prior to that, as it was part of the London Barclays Accelerator in winter 2020. Other backers include Techstars, Barclays and Lemonade Stand as well as angel investors like Chris Adelsbach, Kartik Varma, Martin Cass, and Richard Howard.