The insurance provider for the mobility services sector will fuel its expansion across Europe thanks to the new investment led by Target Global
Zego’s founders Harry Franks, Sten Saar and Stuart Kelly. Photo credit: Zego
The gig economy and transport innovations have transformed how people live their lives and how companies operate. But as the uberisation of the mobility sector scales, professionals and businesses require adequate insurance. That’s where Zego, the insurtech startup, comes in. Launched in 2016 to provide flexible insurance to the industry, the venture is now planning a massive European expansion on the back of a $42m series B round.
The scaleup’s latest investment brings the grand total injected into the company to over $51m, with German VC firm Target Global leading the raise. The investor was joined in this investment by previous backers Balderton Capital, the early stage investor, and Tom Stafford of DST Global, an internet investment company that recently co-led the fintech scaleup Checkout’s enormous $230m series A round. UK money transfer unicorn TransferWise’s founder Taavet Hinrikus also joined the round and will join Zego’s board.
The insurtech scaleup will use the capital injection to improve its platform and expand further across the European continent. Zego is already operating in Britain, Ireland and Spain. Moreover, the company will also double its workforce from 75 to 150 staff members. It will focus predominantly on recruiting engineers and data scientists as well as specialists in operations and pricing.
Commenting on the investment, Sten Saar, CEO and co-founder of Zego, said: “When we built Zego from scratch three years ago, our mission was to transform the insurance sector by creating products which truly reflected the rapidly changing world of transport. We’ve already come a long way since then and the latest funding round paves the way for an exciting new chapter as we expand through Europe.
“The world is becoming more urbanised and because of this, we are moving from traditional ownership of vehicles to shared usership. This means that the rigid model of insurance that has existed for hundreds of years is no longer fit for purpose. We are extremely proud to be at the forefront of change.”
Hinrikus added: “I’ve been following Zego for some time and have been hugely impressed by the team and their ability to rapidly roll out innovative new insurance products and quickly gain market share. This investment will be a springboard for further growth that will see them continue to shake up the insurance sector.”
Zego has grown by 900% in the last year alone and can count roughly a third of the UK’s food delivery market as its customers through partnerships with Just Eat, Uber Eats and Deliveroo, the latter of which raised a $575m series G round in May 2019. Given its already impressive background, Zego has seemingly tapped into a great opportunity and we can’t wait to see where the insurtech startup goes next.