Direct Line takes 15% stake in South Yorkshire technology company
DIRECT Line Insurance Group has taken a 15% stake in Yorkshire technology company The Floow.
Sheffield-headquartered The Floow develops telematics systems, such as apps, to help make vehicles safer and cheaper. When on the move, The Floow’s app can collect data to find out about the style of driving, smoothness, speed, duration of journey, phone interaction, time of day, among other factors. It processes this data and turns it into intellectual insight, which insurance companies then use.
The business, launched in February 2012, has contracts with Direct Line, Accenture, Tracker South Africa and AIG, among others.
Direct Line’s minority investment will be used to support the expansion of The Floow and enable the business to expand its team of scientists, engineers and designers, as well as extend its global reach to a host of blue chip insurance firms worldwide.
Aldo Monteforte, CEO of The Floow, told TheBusinessDesk.com that the investment will enable the firm to accelerate the firm’s growth.
“This investment gives us chance to press down on the accelerator and invest,” he said.
“It is a tremendous opportunity that really focuses on resources and allows us to continue investing in talent. We have been growing organically over the past 18 months and been hiring one person per month. I think we can double the rate of hiring now. It all depends on the finding the right people, of course, but having the resources to do that is so important.
“Over the past 18 months we have seen rapid growth in demand for our products, led by Direct Line Group and other blue chip clients across the world. This investment is a strong endorsement of our strategic aim of being the leading provider of analytical insights to the insurance industry, and our vision to make vehicles safer and cheaper for all.”
The Floow, which employs a team of 30, remains majority-owned by its established management team. Current turnover is in excess of £700,000 but this year, The Floow expects to see turnover reach £2.5m.
Monteforte added: “This is fantastic news for us. It is an endorsement of the work we have been doing for Direct Line and a great reward, not only for the monetary aspect that will bring resources through the company, but also a recognition that our technology works really well.
“It will allow us to accelerate the acquisition of customers internationally, too.”
The Floow announced earlier this year that it had been selected by the Direct Line Group as its supplier in the UK of smartphone applications and telematics data analytics for the Direct Line DrivePlus telematics product range.
Legal advice on this deal was provided to The Floow by Peter Crawford and Lisa Wallis of Sheffield law firm Taylor & Emmet’s corporate team. Corporate finance and accountancy advice were provided to The Floow by Panmure Gordon and Hart Shaw respectively.
The University of Sheffield is a minority shareholder in the company, with Fabio Ciravegna, professor of Language and Knowledge Technologies within the department of Computer Science at the University, a co-founder and a scientific advisor for the business.
The Floow, the name for which is based on Psychology’s mental stage of ‘enhanced productivity’, aims to power a product that encourages drivers to improve their driving, leading to fewer accidents on the road.
