Workers compensation InsurTech Pie Insurance has bagged $127m in a new financing and capital funding round, which will support the acquisition of other insurance companies.
The investment was supported by Gallatin Point Capital, Greycroft, SVB Capital, Aspect Ventures, Elefund and Sirius International Insurance Group.
This round includes $27m in financing which will be used to support the growth and expansion of Pie Insurance’s offerings. The remaining $100m in equity will be used to aid Pie’s goal of purchasing licensed insurance companies.
Founded in 2017, Pie insurance offers workers’ compensation insurance to small businesses, via its website or its independent insurance agents.
The company uses advanced analytics to accurately identify risk for SMBs and give them the coverage that suits them. Coverage can be taken out by SMEs in construction, food, manufacturing, cleaning, landscaping, auto repair, retail, healthcare or office-based industries.
Over the past 12 months, the company has increased its written premium by 150% to around $19m in Q1 2020.
Pie offers its insurance to 34 US states and the District of Columbia. It will continue to reach more US states.
The next stage of growth for the insurance company will be the creation of an affiliated company, Pie Carrier. This new business will create and purchase licensed insurance companies.
Pie Carrier will own the licensed insurance companies that Pie will use to issue a portion of its insurance policies. Gallatin Point Capital is the lead investor in the new business and Sirius Group has also invested into the company.
Pie Insurance co-founder and CEO John Swigart said, “We’re incredibly excited to partner with Matt and his team on this innovative approach toward solving one of the biggest challenges facing a growing insurtech company—building a capital structure that supports both our rapid growth and balance sheet needs.
“This financing enables Pie to continue our expansion, even during these uncertain times, while also forming the foundation for our future.”
The company previously secured $45m in its Series B in 2019, from investors including SVB Capital, Sirius Group, Greycroft, Moxley Holdings, Aspect Ventures, and Elefund. Capital from the round was used to expand its geographical presence, build new distribution sources and improve customer experiences.
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