Fruga raises £1M to turn everyday card spending into discounts on insurance renewals

Manchester-based insurtech Fruga has raised £1 million from NPIF II – PXN Equity Finance, managed by PXN Ventures under the Northern Powerhouse Investment Fund II, and UK venture firm Haatch. The company had been self-funded until now.

Fruga uses open banking to reward policyholders. Customers link a bank account or card to their insurance cover, and purchases with partner brands in travel, groceries and high street retail earn insurance credits. These build up over the year and are applied as a discount at renewal, frequently worth more than £150.

Money Expert already uses the technology so its customers collect credits when they shop with participating brands, and insurers can integrate it too.

The funding goes to hiring, with significant appointments planned for the first quarter of 2027, and to signing household insurers and managing general agents from its pipeline.