Swiss startup turning rainy days into refunds launches first product

Zurich-based startup Poncho has officially launched its weather insurance platform — and bagged some fresh funding to boot.  

Founded in 2023, the company aims to transform how the travel and hospitality industries handle unpredictable weather. 

Poncho’s tech integrates with booking systems, allowing customers to opt for weather protection at checkout. If bad weather, such as heavy rain or wind, occurs during their scheduled event or trip, a refund is processed automatically. You don’t need to file a claim.

Maybe torrential rains turn your Alpine ski trip to slush or maybe you’ve splurged on a Mediterranean yacht adventure only to have rough seas keep you stuck at the dock sipping overpriced cocktails. Either way, it sucks. But with Poncho, at least your budget stays intact when Mother Nature doesn’t play nice.   

Poncho uses real-time weather data and algorithms to predict conditions at specific locations and times. In this way, it can calculate a fair insurance price based on an accurate estimate of whether a certain event or activity will get cancelled or not, it said.

“After months of hard work, we are thrilled to announce that Poncho’s weather insurance solution is finally available! Our product allows travel and leisure businesses to seamlessly offer weather protection to their customers at the time of booking,” said Omar Jerrari, founder and CEO of Poncho. 

Today, the startup announced it has raised €589,000 in seed funding. WeBuild Ventures, a finance-focused VC fund from Switzerland, led the round. 

Poncho, with a lean team of just three, will use the cash injection to refine its platform, scale operations across Europe, and build partnerships with insurers. It also plans to develop additional features, such as weather-triggered promotions.

The startup’s initial focus is on the travel sector, where weather unpredictability often discourages bookings, but its vision extends to other industries, such as outdoor dining and events. 

The company says it has already signed up five leisure and travel businesses in its home stomping grounds of Switzerland.