Insurtech Zego says it has raised $150 million at a $1.1 billion valuation thus emerging as the UK’s first Insurtech unicorn.
Zego is an automobile insurance provider for businesses, from entire fleets of vehicles to self-employed drivers and riders. Zego believes that the problem with traditional insurance is its too expensive and time-consuming, and it no longer suits businesses who use vehicles to earn money. To date, Zego has raised $200 million.
The latest round of funding (said to be the largest ever raised by a UK-founded Insurtech), was led by DST Global and includes other new backers such as General Catalyst, whose founder and MD, Joel Cutler will join Zego’s board.
All of Zego’s existing investors participated in the latest round, including TransferWise founder, Taavet Hinrikus, also on Zego’s board, as well as Target Global, Balderton Capital and Latitude, amongst others.
Zego says it will use the latest funding round to rapidly accelerate its growth, starting with an expansion into new markets including across Europe. The company says it will continue investing in technology, following its recent acquisition of telematics company, Drivit, and will double down on its fleet offering, recognizing changes in consumer behavior that are driving increased demand for new mobility services.
Zego offers various coverage options from pay-as-you-go insurance to annual policies and reports more than 17 million insurance policies that cover more than 200,000 vehicles in five countries.
Sten Saar, CEO and co-founder of Zego, called the funding round a huge milestone for Zego.
“It is a testament to our relentlessly hard-working team and a clear validation of the need for Zego’s products in the market. That being said however, we see this investment as simply another step in our journey towards powering opportunities for businesses across the world. 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.”
Tom Stafford, Managing Partner of DST Global, said they continue to be impressed by the development of the team, product and customer proposition.
Joel Cutler, founder and MD of General Catalyst Partners, said they belive in this new generation of insurance companies, and Zego is one of the most exciting and dynamic start-ups they have seen.
“They have identified the change from ownership to usership of vehicles as a massive opportunity in the insurance market, and I am thrilled to be both joining its board and supporting their team in the journey from European insurtech heavyweight to global insurance company.”