The rise of the gig economy helps London-based insurtech Zego to raise $42M
A couple of years ago, London-based startup Zego realised gig-economy workers would need insurance, and went on to raise a very healthy £6 million in Series A funding, led by Balderton Capital. Its first products were pay-as-you-go scooter and car insurance for food delivery workers.
It’s now announced a $42 million raise in one of the largest funding rounds for a European insurtech startup, in a Series B investment led by pan-European investment firm Target Global, specialists in the fintech and mobility space, with other backers including TransferWise founder Taavet Hinrikus. The proceeds will be used to for Zego’s expansion across Europe and to increase the workforce from 75 to 150.
The raise takes the firm to a total of $51 million in funding, with new investors Latitude joining existing backers Balderton Capital and Tom Stafford of DST Global. The investment comes as the company claims a whopping 900% growth over the past 12 months.
Zego caters to the new mobility services, such as ride-hailing, ridesharing, car rental and scooter sharing, and offers a range of policies from minute-by-minute insurance to annual cover, providing more flexibility than traditional insurers, with pricing based on usage data from vehicles.
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