Zego scoops $150m, securing its position as the UK’s first insurtech unicorn 

By Aisling Finn on Wednesday 10 March 2021

Digital Banking

The Series C funding round saw participation from all of Zego’s previous investors, with new investor General Catalyst also participating. 

Zego scoops $150m, securing its position as the UK’s first insurtech unicorn 
Image source: Sten Saar (centre)/Zego

 

London-based insurtech Zego has bagged a $150m Series C funding round, valuing the fintech at $1.1bn.

The fintech has cemented itself as the UK’s newest fintech unicorn, just two days after Starling Bank joined the ranks of the highest valued fintechs in the UK.

Zego’s latest raise was led by prolific fintech investor DST Global, which has invested in the likes of Klarna, Stripe and Airbnb, and new investor General Catalyst, whose founder and managing director Joel Cutler joins Zego’s board.

All of Zego’s other existing investors also participated in the round, including Wise founder, Taavet Hinrikus, as well as Target Global, Balderton Capital and Latitude.

Sten Saar, CEO and Co-founder of Zego, said: “This latest round of funding is a huge milestone for Zego. 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.”

“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.”

Since launching in 2016, Zego has raised over $200m and it will use the fresh capital to help accelerate its growth, with plans to expand into new markets and deepen its presence across Europe. 

Joel Cutler, founder and MD of General Catalyst Partners, said: “We are a deep believer in this new generation of insurance companies, and Zego is one of the most exciting and dynamic start-ups we’ve seen.” 

“It has identified the change from ownership to usership of vehicles as a massive opportunity in the insurance market, and I am thrilled to be both joining its board and supporting their team in the journey from European insurtech heavyweight to global insurance company.”

Zego provides commercial motor insurance form self-employed drivers and riders to businesses with entire fleets of vehicles.

The fintech offers affordable pay-as-you-go plans and annual policies on more than 200,000 vehicles across five countries, having dished out 17m insurance policies to date. 

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