Zego’s commercial transport insurance startup received an investment of $150 million, bringing the company’s value to $1.1 billion, writes Postimees.
The London-based startup company plans to use the proceeds to expand into Europe and beyond and to double its workforce to over 500 employees. The company also plans to invest in technology and recently acquired telematics company Drivit. Zego’s business idea is to offer hourly insurance to commercial vehicles, such as Uber drivers or Bolt drivers, so that they do not have to conclude expensive annual insurance contracts. Still, they can include insurance when they provide a service. To date, the company has offered 17 million insurance policies for more than 200,000 cars in five countries.
“It is clear that the way vehicles are used is certainly changing, and it is becoming increasingly obvious that the traditional rigid insurance model is no longer suitable”, said in a press release the co-founder and CEO of Zego Sten Saar.
The Zego C-Series round was led by DST Global, a Hong Kong-based venture capital company founded by mail.ru founder Yuri Milner and Russian oligarch Alisher Usmanov. Their investments include Facebook, Twitter, Tswhaapp, Snapchat, Airbnb, Spotify, Alibaba, Xiaomi, Zynga, Groupon and Robinhood. Another important player was the American venture capital company General Catalyst, which also invested in Airbnb and Snapchat. General Catalyst co-founder and managing partner Joel Cutler will also serve on Zego’s board of directors.
“We very much believe in this new generation of insurance companies, and Zego is one of the most interesting and dynamic startups we have ever seen. They found that the transition from ownership to use is a huge opportunity in the insurance market”, said Cutler.
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