Travel fintech Faye raises $50 million Series C at estimated $500 million valuation
The Israeli startup plans to expand globally and use AI to automate insurance claims as it targets the next generation of travel protection.
Travel fintech startup Faye, which develops a digital platform for travel insurance and assistance, has raised $50 million in a Series C funding round, bringing the company’s total funding to $100 million.
The round was led by Madrona, with participation from BRM and existing investors including Portage, F2 Venture Capital, Viola Ventures, and Lumir Ventures.
Faye employs 91 people at its Tel Aviv office and 88 employees in the United States. The company was selected as Calcalist’s most promising startup in 2024.
The company’s valuation increased significantly in the latest round, CEO and co-founder Elad Schaffer told Calcalist, although Faye declined to disclose the exact figure. According to estimates, the company is now valued at approximately $500 million.
“We had the opportunity to raise significantly more in this round, but we are currently in a balanced position and approaching profitability,” Schaffer said. “We have never raised excessive amounts of capital, and that has always worked in our favor. We raise what we need, and today our financial position is very strong.”
Schaffer said Faye generated more than $100 million in revenue last year and has continued to grow since then. “In the coming year, we expect significant growth, and this round is intended to accelerate several initiatives we launched this year.”
The new funding will be used, among other things, to expand Faye’s use of artificial intelligence across its platform. The company is developing tools to automate claims processing and enable faster payments to travelers.
“Today, we already do this for smaller medical incidents and flight cancellations, where customers receive automatic compensation from us,” Schaffer said. “We want to continue expanding these capabilities.”
The company also plans to accelerate international expansion. Faye currently holds 250 licenses across the United States and aims to expand into additional markets globally, with the goal of becoming available worldwide within the next year.
“We will continue growing and hiring employees responsibly,” Schaffer said. “We are still a relatively small company compared with a business that already generates more than $100 million in revenue. We have never conducted layoffs while growing, and we believe we will also pursue acquisitions of companies in our sector.”
Faye recently opened a new U.S. center in Richmond, Virginia, where roughly half of its employees are now based. According to Schaffer, the location provides access to talent with expertise in insurance claims operations.
“I don’t deal with booking the flight,” Schaffer said. “I take care of everything that happens from the moment you book your flight - insurance, assistance, and all your needs while traveling.”
Founded in 2022, Faye has built a digital travel protection platform combining insurance, payments, trip monitoring, and real-time assistance. The company says its AI-powered platform has received more than 20 global industry awards.
Through its app, travelers can purchase insurance coverage in less than a minute, submit claims digitally, and receive approved refunds directly into the company’s digital wallet while abroad.
The platform also provides access to tens of thousands of doctors through remote medical services, eSIM connectivity, airport lounge access, concierge services, flight disruption alerts, destination risk updates, and additional travel services.
Faye operates in the U.S. through a B2B2C model, partnering with travel agencies, airlines, cruise companies, tourism companies, and fintech platforms that distribute its products to travelers.
The company says the U.S. travel insurance market is among the fastest-growing markets globally, while remaining relatively underdeveloped compared with other insurance sectors. Faye is positioning itself as a digital alternative to traditional travel insurance by combining coverage, financial services, and real-time travel assistance into a single platform.
By the end of the year, Faye expects its AI systems to autonomously resolve more than half of insurance claims.
