London-based insurtech Zego raised $150 million (nearly £108 million) Series C funding in the largest ever funding round by any insurtechs in the region. As a result, it becomes the first UK insurtech unicorn with a valuation of $1.1 billion.
Intends to accelerate European expansion
The Series C round funding round was led by DST Global along with other new investors including General Catalyst. The existing investors such as Transferwise founder, Taavet Hinrikus, and Zego’s board, Target Global, Balderton Capital and Latitude, amongst others, took part in the round. Also, Joel Cutler, founder and MD of General Catalyst, joins Zego’s board.Z
Zegowill use the funding to expand across Europe rapidly and beyond. The company will continue to invest in technology, following its recent acquisition of Drivit, a telematics company and will double down on its fleet offering. Also, Zego will continue to invest in its team, especially across product, engineering and data science, as it aims to double headcount by the end of 2021.
Estonian Sten Saar is one of the three founders of Zego. One of the Zego’s investors is an Estonian, Taavet Hinrikus, serial unicorn builder and founder of Wise (former TransferWise).
Sten Saar, CEO and Co-founder of Zego, said: “This latest round of funding is 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.”
Tom Stafford, Managing Partner of DST Global, 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. We are excited to partner with Sten and the team at Zego as they leverage internet, technology, telematics and data-driven decisions to provide the best insurance products at the best pricing for their customers.”
Joel Cutler, Founder and MD of General Catalyst Partners, said: “We are a deep believer in this new generation of insurance companies, and Zego is one of the most exciting and dynamic start-ups we’ve 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.”
Range of motor insurance options
Founded in 2016 by Harry Franks and Sten Saar, Zego is a commercial motor insurance company that powers businesses’ opportunities, from self-employed drivers and riders to entire vehicles’ fleets. The insurtech company combines advanced technology with multiple data sources to offer insurance products and lets businesses save their time and money.
Further, Zego offers a range of cover options from flexible pay-as-you-go insurance to annual policies. Since its debut, the British startup has provided over 17 million insurance policies and covered more than 200,000 vehicles in five countries. The company has raised over $200 million so far.
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