Root Insurance, which uses smartphone technology to gauge driver behavior and price policies, said it has raised $350 million in Series E funding. Root has now raised a total of $523 million in funding, with an additional $100 million in debt financing.
Root said that this latest round, led by DST Global and Coatue, raises its valuation to $3.65 billion. The capital will be used to accelerate growth in existing markets while expanding into new states and developing new product lines. Existing investors Drive Capital, Redpoint Ventures, Ribbit Capital, Scale Venture Partners, and Tiger Global Management all participated in this round, along with several new investors.
Columbus, Ohio-based Root operates through a mobile app that uses smartphone technology, telematics and data science to measure driving behavior including braking, speed of turns, phone use while driving and mileage before calculating a final rate. That data is the primary factor in its pricing. Better drivers get better rates. Customers obtain a personalized quote after a test drive, and they can purchase and manage their policy entirely within the Root mobile app.
Founded in 2015, Root recently expanded into its 29th state, and is now available to more than 65% of the U.S. driving population. The company wrote more than $187 million in insurance premiums in the first six months of 2019, 824% growth over the same period in 2018.
“We are thrilled that our success continues to attract leading investors who recognize the impact Root has already had on the industry and the opportunity still ahead,” said Alex Timm, co-founder and CEO of Root.
Root is currently available to drivers in Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Montana, Nebraska, New Mexico, Nevada, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah and Virginia and will be coming to more states soon.
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