European venture capital firm Target Global has led a $42m Series B funding round for London-based InsurTech Zego.
This latest round brings the company’s total raised to $51m since it launched in 2016.
Target was joined by new investors including TransferWise founder Taavet Hinrikus and Latitude, while existing backers Balderton Capital and DST Global’s Tom Stafford also participated.
Founded in 2016, Zego offers self-employed and private hire drivers with accessible and cost-effective insurance policies.
The policies included coverage for scooters, cars, cycles, vans and other products such as private hire insurance, public liability insurance and employers’ liability insurance. Over the last 12 months, Zego has grown by 900 per cent, the company said in a statement.
The company has said it will use the proceeds of the round to fund its launch in several more European countries by the end of 2019 and double the headcount of its workforce from 75 to 150.
Target partner Ben Kaminski said, “With the growth of new mobility services, Zego identified a major gap in the insurance market and created a unique business model to fill it, which the incumbents will find very difficult to replicate.
“The potential of this company is almost limitless, and I fully expect to see its UK success mirrored across Europe and beyond in the coming years.”
In June last year, Target Global pulled in $100m for an evergreen fund targeting deals in businesses looking to disrupt the transport sector. The vehicle will look to invest a total of $300m over its lifetime, the firm confirmed at the time.
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