grace Raises €5.9M Seed Funding - Insurance for Luxury Goods

Grace Secures $6.4 Million Seed Funding for Luxury Goods Insurance

Grace, a specialized insurance provider focused on high-value items, has announced the completion of a $6.4 million (€5.9 million) seed funding round. The investment was spearheaded by FinTech Collective and Speedinvest.

Protecting Luxury Purchases

Grace collaborates directly with luxury brands to offer protection for consumer goods after purchase. Consumers can easily file claims for stolen or damaged items through the Grace mobile application.

The Grace app also benefits brands by providing tools for fraud detection, streamlined claim management, and efficient logistical support.

Strategic Partnerships and Market Opportunity

The company has confirmed a partnership with a prominent luxury brand based in Europe, although the brand’s identity remains undisclosed.

The increasing incidence of luxury goods theft – nearly tripling in recent years – is creating significant financial burdens for fashion houses. Grace is addressing this challenge.

Addressing a Gap in Post-Purchase Service

According to co-founder and president Lou Dana, the impetus for launching Grace stemmed from a noticeable lack of adequate protection for luxury items, particularly during international travel.

“A significant disparity existed between the high standards of service promised by luxury brands and the reality of post-purchase support when issues arise,” Dana explained.

Elevating Brand Value

CEO Quentin Roy highlighted the difficulty luxury brands face in maintaining control over their products after a sale, especially when complications occur.

“Our offering isn’t simply about providing protection; it’s about enhancing and safeguarding their brand reputation,” Roy stated, describing the company’s core value proposition.

Competitive Landscape and Future Growth

While other companies, like Zing Cover, offer specialist insurance for luxury goods, Grace positions itself uniquely. It operates at the convergence of embedded insurance, premium services, and post-purchase protection.

Additional investors in this funding round include Kima, Bpifrance, and Firstminute Capital.

Expansion Plans

The newly acquired capital will be allocated towards expanding Grace’s operations throughout Europe and bolstering its product engineering team. The company aims to insure over 200,000 luxury items before the year concludes.

Grace is currently working with Chubb, a global leader in the insurance industry, to provide underwriting and security for its services.