Root Insurance, a property casualty InsurTech, has closed its Series E funding round on $523m, valuing it at $3.65bn.
The capital injection comes with an additional $100m in debt financing.
FinTech Global previously reported the round was likely to close.
DST Global and Coatue both led the round, with commitments also coming from previous backers Drive Capital, Redpoint Ventures, Ribbit Capital, Scale Venture Partners, and Tiger Global Management.
Several unnamed first-time investors to Root also participated in the round.
Capital from the round will be used for accelerating growth in existing markets and expanding into new states. It will also use funds to develop new product lines.
Founded in 2015, Root is an online auto insurance platform which uses a driver’s smartphone to determine how well they drive and then use the data to determine a personalised insurance price. Through the mobile app, a user can purchase and manage their policy and claims.
DST Global managing partner Tom Stafford said, “Root is transforming auto insurance, the largest property and casualty insurance market in the U.S., by leveraging technology and data to offer consumers lower prices, transparency, and fairness.
“We are delighted to support Alex and the team at Root as they continue to build a technology company within the insurance industry.”
Earlier in the month, Root Insurance formed a deal with Owlcam to improve insurance claims. The deal sees Root leverage the Owlcam video security and safety system to provide accurate information or an incident.
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