Commercial mobility insurer Zego has become the UK’s first insurtech unicorn after raising $150 million, valuing the company at $1.1 billion. The London-based business will now accelerate the expansion of its product offering across Europe and beyond.
The latest round of funding, and 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 managing director, Joel Cutler joins Zego’s board. (Editor’s note: Zego reaches “unicorn” status as a privately held startup company valued at more than $1 billion).
All of Zego’s existing investors followed on in the latest round, including TransferWise founder, Taavet Hinrikus, also on Zego’s board, as well as Target Global, Balderton Capital and Latitude, among others.
Zego has now raised more than $200 million since launching in 2016 and this latest investment comes during a period of capital-efficient, hyper-growth, despite hugely challenging market conditions, with the company’s run rate premiums exceeding $100 million, said London-based Zego in a statement.
Zego will use the latest round of investment to rapidly accelerate its growth, starting with an expansion into new markets and deeper penetration across Europe. 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 an increased demand for new mobility services.
Zego will also continue to invest in its team, especially across product, engineering and data science, aiming to double headcount by the end of 2021.
“[W]e 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,” commented Sten Saar, CEO and Co-founder of Zego.
“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,” Saar added. “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.”
Zego is a commercial motor insurance company that powers opportunities for businesses, from self-employed drivers and riders to entire fleets of vehicles. It combines advanced technology with multiple data sources to offer insurance products that save businesses time and money. Zego offers a range of cover options from flexible pay-as-you-go insurance to annual policies, and, so far, has provided more than 17 million insurance policies and covered more than 200,000 vehicles in five countries.
- UK Insurtech Zego Gets Dutch Broking License, Enabling Post-Brexit Growth in EU
- UK Insurtech Zego Buys Telematics Firm Drivit to ‘Revolutionize’ Insurance Pricing
- Startup Zego Becomes 1st U.K. Insurtech to Get Insurance License
Was this article valuable?
Here are more articles you may enjoy.