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Zego, the tech-enabled commercial motor insurer, raises $150M at $1.1B valuation
Zego, the insurtech that got its start by offering flexible motorbike insurance for gig economy workers but has since expanded with a range of tech-enabled commercial motor insurance products, has raised $150 million - giving it a $1.1 billion valuation and a unicorn status - round led by DST Global and General Catalyst.
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.
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 well over $100 million.
They 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, recognising changes in consumer behaviour 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, as it aims to double headcount by the end of 2021.
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. 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.
