Lemonade rival Hippo scores $150m Series E funding as insurtech ecosystem hots up

By Aisling Finn on Thursday 23 July 2020

Digital Banking

Hippo continues to increase its stake in the insurtech landscape.

Lemonade rival Hippo scores $150m Series E funding as insurtech ecosystem hots up
Image source: Assaf Wand (right)/Hippo

US insurtech Hippo has closed a $150m Series E fundraise and has hit a valuation of $1.5bn. 

The funding round saw involvement from both new investors such as, Fin TLV, Ribbit Capital, which has invested in the likes of Revolut, Robinhood, Raisin and Funding Circle, Dragoneer and, Innovius investors. 

Existing investors in the round include Comcast Ventures, Felicis Ventures, which has invested in fellow fintechs Credit Karma and Plaid, Fifth Wall, Pipeline Capital, an investor in Elon Musk’s SpaceX, and several others. 

Founded in 2015, Hippo offers affordable home insurance through using technology and data to create a bespoke service for its customers. 

Assaf Wand, co-founder and CEO of Hippo, said: “We’ve seen tremendous growth over the last three years since launch, by leveraging technology wisely and reimagining the customer experience.” 

“We’re developing a long-term relationship with our customers, in part by supporting our insurance customers with home maintenance and smart home devices – all of which help solve small problems before they become big headaches.” 

The insurtech is planning to use the money to continue its rapid expansion across the US, with Hippo hoping to reach 95 per cent of the US population in the next 21 months, grow its employee numbers and invest in technology. 

To date, Hippo has raised a massive $359m and currently operates in 29 of the 50 states in America. 

Earlier on this month, US insurtech Lemonade surpassed all expectations on its debut on the New York Stock Exchange. 

The company was hoping to raise at least $100m, but within hours of its IPO, Lemonade’s valuation had soared from $1.6bn to $3.9bn. 

Over this side of the pond, however, insurtech seems to be having a tougher time and breaking through the incumbents. 

Just last week, UK insurtech Brolly was acquired by Direct Line Group for an undisclosed sum, following the startup struggling to gain enough traction to stay afloat on its own.  

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