Zego, the London-based insurtech, has raised $42m in a Series B investment round which will be used for Zego’s expansion across Europe and to double its workforce.

The round was led by Target Global and other backers included TransferWise founder Taavet Hinrikus.

Zego has now raised more than $51m, and this investment comes as the company has grown 900% over the past 12 months.

The company is currently based in the UK, Ireland and Spain but hopes to launch operations in several European countries by the end of 2019 and increase its workforce from 75 to 150.

Sten Saar, CEO and Co-Founder of Zego, said: “When we built Zego from scratch three years ago, our mission was to transform the insurance sector by creating products which truly reflected the rapidly changing world of transport.

“We’ve already come a long way since then, and the latest funding round paves the way for an exciting new chapter as we expand through Europe.

“The world is becoming more urbanised and because of this, we are moving from traditional ownership of vehicles to shared usership.

“This means that the rigid model of insurance that has existed for hundreds of years is no longer fit for purpose. We are extremely proud to be at the forefront of change.”

Zego was founded in 2016 to provide flexible insurance for the gig economy and offers a range of policies from minute-by-minute insurance to annual cover, with pricing based on usage data from vehicles.

The firm currently insures a third of the UK’s food delivery market through partnerships with Deliveroo, Just Eat and Uber Eats.

Taavet Hinrikus, founder at TransferWise, added: “I’ve been following Zego for some time and have been hugely impressed by the team and their ability to rapidly roll out innovative new insurance products and quickly gain market share.

“This investment will be a springboard for further growth that will see them continue to shake up the insurance sector.”