Fruga, a Manchester-based InsurTech using open banking to reward policyholders, has secured £1m in funding to expand its platform and help consumers bring down what they pay when their insurance comes up for renewal.

The round was backed by NPIF II – PXN Equity Finance, a fund run by PXN Ventures under the Northern Powerhouse Investment Fund II, alongside Haatch, a UK venture capital firm that pairs funding with practical support for founders.

The company, which had been self-funded until now, intends to use the capital to expand its headcount, with significant appointments planned for the first quarter of 2027. It also aims to grow its client roster, having developed a pipeline of well-known household insurers and managing general agents.

Through Fruga, policyholders connect a bank account or a credit or debit card to their insurance cover via open banking. Purchases made with chosen partners in sectors such as travel, groceries and high street retail generate “insurance credits”. These accumulate across the year and are applied as a discount at renewal, frequently worth more than £150, while also offering benefits during the life of the policy.

Money Expert is among the firms already working with Fruga. It has deployed the technology so that its customers collect credits whenever they shop with participating brands, gradually building a fund to offset insurance bills, which continue to rank among the biggest costs facing households.

Insurers are also able to integrate the platform under their own branding, allowing them to collect data and maintain contact with policyholders throughout the year rather than only at moments such as a claim or renewal.

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