Zego, the insurtech that got its start by providing flexible motorcycle insurance coverage for gig economy workers however has because broadened with a series of tech-enabled commercial motor insurance products, has actually raised $150 million.
Leading the London-based company’s C round — — providing it a$1.1 billion assessment and a unicorn status — is DST Global. Other new backers include General Catalyst, whose creator and MD, Joel Cutler, signs up with Zego’s board.
Significantly, I’m told all existing investors followed on, consisting of Wise’s Taavet Hinrikus, who is also on the Zego board, and Target International, Balderton Capital and Latitude. Zego has now raised more than $200 million since launching in 2016.
The insurance company says it will utilize the funding to “rapidly expand across Europe and beyond”. It will also double its workforce, which presently stands at 265 workers, to over 500 employees by the end of 2021, and continue to buy technology. Late in 2015, Zeho acquired telematics company Drivit.
Zego provides business motor insurance for companies, from self-employed chauffeurs and riders to fleets
of automobiles, spanning pay-as-you-go insurance coverage to yearly policies. It combines tech with several information sources to use insurance products that it declares save time and are more cost-efficient. It earned its own insurance coverage license in 2019, allowing it to construct and offer its own policies, in addition to working along with other insurers. Technical/data combinations include those with business in the ride-hailing area, such as Uber, Ola and Bolt, and in the delivery space, such as Deliveroo, Uber Consumes and Just Eat. More recently, Zego has actually ended up being an essential partner in the U.K.’s growing e-scooter rental market, partnering with companies like Tier,
Voi and Dott. Next up, the insurtech is wagering huge available insurance coverage for fleets. “Over the previous couple of years, Zego’s focus on powering chances for companies has actually expanded to consist of not just self-employed drivers and riders, but also entire fleets of automobiles,” Sten Saar, CEO and co-founder of Zego, tells me, noting that 80% of brand-new automobiles are now offered to industrial customers.
“This has been both a natural progression for the business, with the only genuine difference being circulation, as well as a focused effort, as Zego intends to capitalise on an ever-growing market presently underserved by the insurance sector”.
To date, Zego has actually provided more than 17 million insurance plan and covered more than 200,000 cars in five nations.
“While many conventional insurers price their insurance products based purely on factors such as age and lorry type, and while others may utilize telematics-based motorist behaviour information too, Zego is able to rate policies based not only on standard factors, but likewise motorist behaviour data and working habits information,” includes Saar.
“In truth, overall, the details Zego can gather total up to 5 times more information per vehicle than rivals, or 50 information points per second. This suggests that we have a far more comprehensive understanding of danger than competitors, enabling us to provide best-value insurance coverage, from policies varying from one hour to one year”.
Cue statement from Tom Stafford, handling partner of DST Global: “The shift to digital is taking place throughout multiple industry classifications and is progressively occurring in the insurance market. We are thrilled to partner with Sten and the team at Zego as they leverage internet, technology, telematics and data-driven choices to provide the best insurance coverage items at the very best rates for their customers.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.