# Cachet Financial Model

B2B2C insurtech marketplace offering flexible, usage-based insurance products to gig/platform economy workers via partnerships with ride-hailing, delivery, and gig platforms.

- Canonical: https://finamodel.com/startups/cachet
- Excel download: https://finamodel.com/startup-models/cachet.xlsx
- Category: InsurTech
- Model type: Insurance GWP
- Funding round: Strategic round
- Funding: $7M
- Founded: 2022
- Geography: Baltics (Estonia primary, Latvia), Poland, with ambition across CEE and EU. Live pilots also visible in Lithuania and UK flags [DECK slide 12].
- Customer: B2B

## About the company

Cachet is a B2B2C insurance marketplace for gig-economy workers, offering flexible coverage that follows drivers and couriers across platforms. Its risk score uses trip and telemetry data to price motor, rider, liability, and related products more accurately.

The company distributes partner-insurer policies through gig platforms and its app, while also selling fleet, parking, and vehicle tools. It reported €268,000 of monthly top-line revenue, 40% Estonian market share, and data from seven million trips.

The model combines brokerage commission on GWP with SaaS ARR. Active workers, premiums, commission rate, platform partnerships, and policies drive insurance revenue; fleet-tool customers and ARPU add software revenue. CAC, claims data quality, and partner retention govern margin.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Flexible, personalised insurance in a single policy that follows the individual worker across multiple gig platforms ("multi-apping").
- Products: Flexible motor/traffic insurance for ride-hailing drivers; City Rider insurance for couriers & regular riders; Professional liability insurance (e.g. car washers via UpSteam); SaaS modules for parking, fleet management, vehicle booking.
- Core engine: Cachet Risk Score built from aggregated telemetry/trip data across platforms - enables accurate risk pricing and lower premiums.
- Consumer value: up to 50% cheaper insurance policy prices for platform workers.
- Insurer value: lower loss ratio - illustrated as "1% lower loss ratio = €100K more profit per €10M GWP".
- Platform value: lower insurance costs → more take-home pay → higher driver motivation, lower bonus spend.

## Market

- 28M platform workers in the EU in 2021 → projected 43M by 2025 (+53% growth).
- No explicit TAM/SAM/SOM breakdown in EUR terms stated in the deck.
- Insurance is described as "the 2nd biggest cost for platform workers" - no EUR figure given.

## Revenue model

- Insurance brokerage/marketplace: Cachet holds an EU Broker License and distributes policies from partner insurers (Allianz, Gjensidige, PZU, ERGO, Seesam, BTA). Revenue is implicitly commission/take-rate on GWP.
- SaaS tools (parking solution, fleet management, vehicle booking) for car-sharing/fleet operators - separate SaaS revenue stream.
- Distribution channel: B2B2C via platform partnerships (Bolt, Uber, Yandex Taxi, VOK, FREENOW) plus direct mobile app.
- Sample pricing shown in app: ride-hailing casco insurance from €72 (4 months) to €187.85 (12 months).

## Traction & metrics

- Monthly top-line revenue: EUR 268K
- NPS: 62
- CSAT: ~90%
- CAC payback time: ~5 months
- Data bank: 7M trips, 30M km, 1M parking events
- Estonia market share: 40%
- Customers in Poland: ~700
- Driver savings vs. next-best offer: 47%
- Team: 14 people
- EU Broker License: held
- Live pilots/customers in: Estonia, Latvia, Lithuania, Poland, and UK (flags shown)
- Key insurer partners: Allianz, Gjensidige, PZU, ERGO, Seesam
- Key platform partners: Uber, Bolt
- History: Launched Estonia 2019; Latvia 2020; Poland 2021; 10 new insurer partnerships in 2021

## Unit economics

- CAC payback time: ~5 months
- Driver savings: 47% vs. next-best offer
- Insurer impact example: 1% lower loss ratio = €100K more profit per €10M GWP
- No explicit CAC EUR amount, LTV figure, gross margin %, or commission rate stated in deck.

## Competition / moat

- Competitive advantage framed around: (1) multi-platform data aggregation enabling better risk scoring than traditional insurers; (2) individual policy that travels with the worker across platforms; (3) established platform partnerships as distribution moat.
- No direct competitor names called out in the deck.
- Awards cited as differentiation: Insurtech 100 (2021), Europas 2021 Finalist (InsurTech Award), Barclays Accelerator, PlugAndPlay InsurTech, Sifted/FT Insider.

## Team & funding ask / use of funds

- Co-founders: Hedi Mardisoo (CEO, 15 yrs intl mgmt, "Women to Watch in Fintech" 2020); Kalle Palling (COO, 12 yrs Estonian Parliament, Sharing Economy Regulation architect).
- Tech Lead: Joosep Lall (ex-Nevercode, Playtech, LHV bank).
- General Manager CEE: Mateusz Litewski (ex-Uber Head of Public Policy, CEE).
- Advisors: Tangy Morgan (Bank of England), Martin Cass (Barclays), Risto Rossar (Insly), Steven Jacobs; plus 10 experts in law, marketing, support, design.
- Previous investors: Icebreaker, Lemonade Stand, Techstars, Barclays.
- Angel investors: Chris Adelsbach (Outrun Ventures/Techstars), Kartik Varma (MD Techstars, Harvard), Martin Cass (Barclays), Richard Howard (AWS).
- Current ask: "New round" - no specific amount or use-of-funds breakdown stated in deck.

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## Recommended financial model

- **Archetype + why:** Insurance brokerage / GWP-based P&L with a secondary SaaS ARR layer. Cachet earns brokerage commissions on Gross Written Premium it places; the risk score and SaaS tools (fleet/parking) generate a separate recurring fee stream. The dominant unit is GWP x commission rate. A 3-statement model underneath captures opex burn vs. revenue growth.

- **Forecast horizon & granularity:** Monthly for Year 1–2 (near-term cash runway and CAC payback visibility), then annual for Years 3–5. Horizon: 5 years from Dec 2021 base.

- **Key drivers & assumptions:**

| Driver | Value |
| -- | -- |
| Monthly revenue (starting point) | EUR 268K/month |
| Estonia market share | 40% of ride-hailing insurance |
| Poland customers | ~700 |
| CAC payback time | ~5 months |
| Driver savings vs. market | 47% |
| EU platform workers, 2021 | 28M |
| EU platform workers, 2025 | 43M (+53%) |
| GWP commission/take-rate | ~15–20% |
| Avg annual premium per driver | ~EUR 200–300 |
| Blended gross margin on brokerage | ~70–80% |
| SaaS ARPU per fleet/platform customer | EUR 500–2,000/month |
| Monthly opex (team of 14) | EUR 150–200K |
| New market entry cost (per country) | EUR 50–100K |
| Monthly customer growth rate (Poland) | 15–25% MoM |
| Churn rate | 10–15% annually |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Base:** Monthly revenue grows at ~10% MoM, commission take-rate 15%, CAC payback stays ~5 months, Poland reaches Estonia-level penetration in 2–3 years, one new EU market per year.
  - **Bull:** Take-rate increases to 20% as risk score IP commands premium pricing; platform partnerships accelerate distribution (lower CAC); SaaS layer scales to 20+ fleet clients.
  - **Bear:** Platform partners (Bolt/Uber) in-house insurance, compressing margins; Poland pilot fails to scale beyond 700 customers; fundraise delayed, opex outpaces revenue.

- **Required sheets / outputs:**
  1. **Assumptions** - all drivers, tagged /
  2. **Revenue Build** - GWP by market × penetration rate × avg premium × commission rate; SaaS ARR separately
  3. **Customer Cohorts** - monthly new customers, churn, active base per country
  4. **P&L** - gross profit, opex (headcount, tech, marketing, regulatory), EBITDA
  5. **Cash Flow & Runway** - monthly burn, cash balance, months of runway
  6. **Unit Economics** - CAC, LTV, LTV/CAC ratio, payback period by cohort
  7. **Market Penetration** - EU platform worker base → Cachet addressable → active customers over time
  8. **Scenarios** - toggle Base / Bull / Bear on key flex variables
  9. **Dashboard** - KPI summary (MRR, GWP, active customers, NPS, burn, runway)

## Frequently asked questions

### Is the Cachet financial model free?

Yes. The Cachet model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.