London-based InsurTech firm Zego has raised $42 million to fuel its expansion across Europe and double its workforce.

The Series B round was led by pan-European investment firm Target Global, with other backers including TransferWise founder Taavet Hinrikus.

Zego has now raised more than $51 million, with new investors Latitude joining existing backers Balderton Capital and Tom Stafford of DST Global to participate in the latest funding round. Target Global’s Partner Ben Kaminski and Taavet Hinrikus join Zego’s board.

The company will use the investment to enhance its tech platform and launch operations in more European countries by the end of 2019, adding to its current bases in the UK, Ireland and Spain. To enable this rapid growth, Zego plans to increase its workforce from 75 to 150, with the company looking to hire engineers, data scientists, and specialists in operations and pricing.

Zego was founded in 2016 to provide flexible insurance for the gig economy and has since expanded its B2B offering to cater to the fast-growing market of new mobility services, such as ride hailing, ride sharing, car rental and scooter sharing. The company offers a range of policies from minute-by-minute insurance to annual cover, providing far more flexibility than traditional insurers, with pricing based on usage data from vehicles.

Sten Saar, chief executive 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."

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