Swedish insurtech start-up Hedvig has raised around SEK100m ($10.4m) in a Series A funding round led by the US-based Obvious Ventures and retailer Axel Johnson’s venture arm D-Ax.

The latest round, which follows an earlier funding round of $3.11m from Cherry Ventures and a cluster of angel investors, values the digital insurer at SEK342m ($35.5m).

Following its launch in May last year, Hedvig has insured over 15,000 consumers in Sweden. The company leverages artificial intelligence technology to serve its customers. It also uses its algorithms to automate its claims processing.

Hedvig intends to invest the proceeds to develop new services and offerings, expand its customer base in the domestic market while also expanding its footprint both in Sweden and other markets globally.

Obvious Ventures co-founder Vishal Vasishth said: “Hedvig is harnessing its purpose, the power of AI, and its human-cantered product to create a modern, full-stack insurance company.

“Their incredible team is delivering against the mission – to give people the world’s most incredible insurance experience – and we at Obvious are honoured to help scale it further.”

D-Ax chairman Joakim Skarborg said: “As always, we take a long-term perspective on our investment, and we look forward to supporting Hedvig in scaling their business significantly over the years to come for the benefit of consumers everywhere.”