Lemonade files for IPO to raise $100m

Lemonade has filed for an Initial Public Offering (IPO) on the New York Stock Exchange, with the aim of raising at least $100 million.

The US InsurTech launched in 2015, building a fully-licensed home insurance product, but through an app.

Its business model keeps a flat fee of 25 per cent of customers’ premiums, using the remainder to pay claims and donate to charity. It has so far been successful, with the IPO documentation showing revenue of $26 million in the three months to 31 March, compared to $11 million for the same period in 2019.

However, losses during the quarter were $36.5 million, up from $21.6 million last year.

Lemonade raised $300 million from SoftBank in April last year, valuing the business at $2.1 billion. The valuation and share pricing of this IPO has not yet been decided.

“By leveraging technology, data, artificial intelligence, contemporary design, and behavioural economics, we believe we are making insurance more delightful, more affordable, more precise, and more socially impactful," read the prospectus.

"To that end, we have built a vertically-integrated company with wholly-owned insurance carriers in the United States and Europe, and the full technology stack to power them.”

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