A French Startup Secures Funding for European Expansion

A France-based company revolutionizing driver education and road safety has announced a significant funding round to facilitate continued growth throughout Europe.

Ornikar's Integrated Approach

Ornikar distinguishes itself by offering a comprehensive suite of services for aspiring drivers. These include online driver education courses, a platform for scheduling in-person lessons with certified instructors, and a streamlined system for booking both written and practical driving exams.

Furthermore, the company provides newly licensed drivers with access to competitive car insurance rates. This integrated model has proven successful, leading to a recent investment of €100 million ($120 million).

Funding Allocation and Expansion Plans

The newly acquired capital will be strategically deployed to broaden Ornikar’s reach. Currently, driver education services are available in France and Spain, while insurance products are offered solely in France.

The company’s objective is to extend both its educational resources and insurance offerings to additional European markets.

Investment Details and Company Valuation

This Series C funding round is spearheaded by KKR, with participation from existing investors including Idinvest, BPI, Elaia, Brighteye, and H14.

While Ornikar’s CEO, Benjamin Gaignault, and co-CEO Flavien LeRendu have not disclosed the exact valuation, sources estimate it to be approximately $750 million. To date, the company has raised a total of $175 million.

Disrupting the Driver Education Landscape

Founded in 2013, Ornikar was established with the explicit goal of transforming the driver education experience.

Prior to Ornikar, the process of organizing, learning, and scheduling driving lessons was often fragmented and entirely offline. The company’s online platform offered a significant improvement, making the process more accessible and, on average, 40% more affordable.

Growth and User Base

Ornikar’s current offerings encompass online course materials, a booking service, and a network of instructors spanning 1,000 cities and towns in France.

The company also operates under the Onroad brand in Spain. To date, 1.5 million individuals have completed Ornikar’s driver education courses, and an additional 2 million have utilized its driving school services.

The company has experienced accelerating growth, with 420,000 new customers joining Ornikar in the past year.

Pandemic-Driven Growth

Despite the challenges presented by the pandemic, Ornikar experienced substantial growth in 2020.

As people sought safer and more private transportation options, demand for Ornikar’s services increased. Gaignault reported a 30% monthly growth rate throughout the year, driven by individuals utilizing their time at home to prepare for future driving needs.

Expansion into Car Insurance

Capitalizing on its existing user base and market understanding, Ornikar launched its car insurance product during the pandemic.

This expansion was motivated by a desire to address gaps in the market and provide a user-centric insurance experience.

Addressing Market Deficiencies in Insurance

The French car insurance market, valued at €17 billion ($20 billion) annually, is largely dominated by established players.

Gaignault observed that these larger companies often prioritize scale over user experience, particularly when serving first-time drivers seeking competitive rates.

Ornikar Assurance: A Rising Contender

Ornikar Assurance is projected to reach 20,000 users by August, marking its one-year anniversary.

Although currently representing a smaller portion of Ornikar’s overall revenue compared to its driver education platform, the rapid adoption rate – including customers who had not previously engaged with Ornikar’s services – indicates significant potential.

Strategic Shift Towards Insurtech

A noteworthy trend emerged in October, when 80% of new insurance customers were acquired through channels outside of Ornikar’s existing driver education network, such as social media and Google Ads.

This prompted the company to establish a dedicated business unit and explore opportunities as an insurtech company.

Synergy Between Education and Insurance

However, Gaignault emphasized that this expansion will not come at the expense of the core driver education business.

He envisions a future where the two services are mutually reinforcing, with the driving school serving as a pipeline for insurance customers and insurance rates potentially influenced by participation in ongoing driver education courses.

KKR's Perspective

Patrick Devine, Director at KKR and member of the Next Generation Technology Growth investment team, commented on Ornikar’s success.

“Ornikar has done a tremendous job creating a great experience for students and driving instructors through engaging online education courses and a well-designed marketplace,” he stated. “We are thrilled to invest behind Benjamin, Flavien, and their talented team as they expand internationally and accelerate their insurance offering following the successful launches of Onroad in Spain and Ornikar Assurance.”