Zego is a UK-founded commercial motor insurance provider that specialises in flexible insurance. Its insurance solutions are aimed at highly customised policies to businesses, freelancers, independent contractors, and mobility service providers such as Uber and Deliveroo.
Insurtech startup raises funding
In a recent development, Zego has raised $150M (approx €126M) at a $1.1B (approx €924.3M) valuation. According to the company, with this funding, Zego has become the UK’s first insurtech unicorn.
Since its inception in 2016, this London-based business has raised more than $200M (approx €168M) in funding. This investment comes in despite hugely challenging market conditions, with the company’s run-rate premiums exceeding over $100M (approx €84M).
This Series C round of investment of Zego was led by DST Global and includes other new backers such as General Catalyst, whose founder and MD, Joel Cutler joins Zego’s board. 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, amongst others.
Use of the capital
The raised capital will enable Zego to rapidly accelerate its growth, starting with an expansion into new markets and deeper penetration across Europe.
In addition, it will continue investing in technology, following its recent acquisition of telematics company, Drivit, as well as double down on its fleet offering after a change in consumer behaviour that has increased the demand for new mobility services.
Sten Saar, CEO and co-founder of Zego, says, “This latest round of funding is a huge milestone for Zego. 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.”
He further adds, “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.”
The company will also continue to invest in its team across product, engineering and data science, as it aims to double headcount by the end of 2021.
What services does Zego offer?
The company was founded in 2016 by Harry Franks, and Sten Saar. Zego is a commercial motor insurance company that powers opportunities for businesses, from self-employed drivers and riders to entire fleets of vehicles. The platform combines advanced technology with multiple data sources to offer insurance products that save businesses time and money.
Since its inception, Zego has believed that the problem with traditional insurance is that it holds businesses back. It’s too expensive and time consuming, and it no longer suits businesses who use vehicles to earn money. Zego’s products represent a solution to this problem for businesses based across the UK, Europe and beyond.
Zego’s cover options include from flexible “pay-as-you-go insurance” to annual policies, and to date, has provided more than 17 million insurance policies and covered more than 200,000 vehicles in five countries.