New Zealand’s Simfuni has closed a $NZ3 million ($2.73 million) venture capital raise led by Icehouse Ventures.

The sum brings total funding raised by the life insurance start-up to $NZ5.8 million ($5.28 million).

Simfuni launched a customer payment alternative for the insurance sector in 2023 and has since added a policy management platform that helps streamline operations, migrate closed books to reduce costs, grow portfolios and meet regulatory requirements.

CEO Shaun Quincey says that by transforming “outdated, siloed systems” into a single platform, Simfuni also helps insurers “drive persistency and retention through better customer experiences that keep policyholders engaged and loyal”.

He added: “This raise is a signal to the market. We have investor confidence, proven solutions, and a team capable of leading meaningful change in one of the most conservative and critical sectors in financial services.”

Simfuni won the Australian and New Zealand Institute of Insurance and Finance insurtech start-up of the year award in 2024 and is a finalist at this year’s New Zealand Financial Services Council awards. It is competing against Nib New Zealand, AIA New Zealand, Lifetime Retirement Income and MAS in the innovation of the year category. The winner will be announced on September 11.