London-based InsurTech Zego raised $150m in a Series C funding round valuing the company at $1.1bn.
The round was led by DST Global with other backers such as General Catalyst, whose founder and MD, Joel Cutler joined Zego’s board. Existing investors which followed on in the latest round include TransferWise founder Taavet Hinrikus as well as Target Global, Balderton Capital and Latitude among others.
The firm plans to use the funding to expand across Europe and beyond. In addition, it aims to double headcount by the end of 2021 and will continue to invest in hiring across its product, engineering and data science teams.
Following its recent acquisition of Drivit, a telematics company, the firm will double down on its fleet offering, by pumping in more investment in technology.
After the latest round, Zego has raised over $200m since launching in 2016.
Founded in 2016 by Harry Franks and Sten Saar, the commercial motor insurance company offers a range of services from flexible pay-as-you-go insurance to annual policies. The firm’s services are targeted towards self-employed drivers as well as entire fleets of vehicles. So far, the InsurTech has provided more than 17 million insurance policies and covered more than 200,000 vehicles in five countries.
Commenting on the firm’s growth, CEO and co-founder of Zego Sten Saar said, “In the five years since we started Zego, we’ve covered hundreds of thousands of businesses across Europe, whether they be self-employed drivers or riders or whole fleets of vehicles, and this is just the start for us.
“It is clear that the way people use vehicles is undoubtedly changing, and what’s become ever more apparent is that the traditional, rigid model of insurance is no longer fit for purpose. We founded Zego to offer a more effective solution for customers, and with the support of our amazing backers and the work of our team, we are in the best possible position to expand this offering on a global scale.”
Sharing the same sentiment, DST Global managing partner Tom Stafford said, “We have been following Zego since inception, and continue to be impressed by the development of the team, product and customer proposition. The shift to digital is occurring across multiple industry categories and is increasingly occurring in the insurance industry. [They] leverage internet, technology, telematics and data-driven decisions to provide the best insurance products at the best pricing for their customers.”
It’s been a good week for British tech companies as this news comes on the back of FinTech Starling Bank achieving unicorn status.
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