Root Insurance, an Ohio-based car insurtech company, announced on Tuesday it is planning to significantly expand its presence in Columbus. This news comes nearly two months after the company secured $51 million in funding through its Series C round, which was led by Redpoint Ventures, with Scale Venture Partners and existing partners Ribbit Capital and Silicon Valley Bank Capital Partners.
As previously reported, Root was founded in 2015 and describes itself as a full-stack automobile insurance company founded on the principle of fundamental fairness. The company explained that it leverages its proprietary mobile app to give drivers customized quotes based primarily on actual driving behavior such as hard brakes, aggressive turns, and mileage driven. Because individual driving behavior is the biggest factor in Root’s rating algorithm, good drivers can save significantly—up to 52% off traditional insurance rates.
Root reported that it will move its offices to a new, 65,000-square-foot space in Downtown Columbus and will invest approximately $2,000,000 to build out and equip the new location. The company also announced that by the end of 2021 it plans to increase its current workforce of 88 employees by more than 500 percent, creating 463 new, full-time, permanent jobs. While sharing details about the expansion, Alex Timm, Co-Founder and CEO of Root, stated:
“Root’s growth since we were founded in 2015 is due in no small part to the strong talent we continue to find in Columbus. While this expansion will allow us to continue to grow Root’s offering nationally, it will also deepen our roots in Columbus, with the resources and space to grow the business with the momentum it deserves.”
Since launching, Root has expanded its offering to 16 states, with plans to be nationwide by the end of 2019. In April 2018, the company announced the closing of a $51-million Series C funding round, one of the largest funding announcements by an Ohio tech startup.