Online auto insurance platform Root Insurance has raised $100m in its Series D round, just months after it closed its Series C on $51m.
This investment makes Root Insurance the latest FinTech unicorn, with its valuation now sitting at $1bn.
Tiger Global Management led the new investment round, with participation also coming from existing backers Redpoint Ventures, Ribbit Capital, and Scale Venture Partners.
Founded in 2015, Root Insurance is an auto insurance app that provides users with better rates through its own rating algorithm. Consumers get a personalised quote based on their driving behaviour, this includes aspects like hard brakes, aggressive turns and mileage driven. Through this method, the company claims drivers can save up to 52 per cent more.
Through the app, users can make claims, invite other household members to the app to make savings, cancel policies and view insurance cards.
The company has received a 4,500 per cent YoY increase in direct written premiums in the first six months of 2018.
Capital from the round will be used to further its presence in existing markets, and expand into new states. The platform is currently available in 20 US states, but the company is expecting to move into all 50 states by the end of 2019.
Alongside this, Root Insurance is hoping to hire more staff, with a focus on engineers, actuaries, claims, and customer service support teams.
Lee Fixel partner Tiger Global Management partner Lee Fixel said, “Root Insurance is leading digital innovation in U.S. auto insurance. This industry is ripe for change, and we are excited to invest in a team that has the expertise, vision, and momentum to deliver real results. We look forward to growing our partnership with Root and helping them expand their footprint across the United States.”
Earlier in the year, the company raised $51m in its Series C round which was led by Redpoint Ventures.
Revolut was another FinTech company to join the FinTech unicorn club this year, following a $250m Series C round.
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