Commercial motor insurer Zego has become the UK’s first InsurTech unicorn after raising a $150 million Series C funding round, which valued the company at $1.1 billion.

Zego offers a range of cover options, including pay-as-you-go insurance and annual policies, and claims to cover more than 200,000 vehicles in five countries.

The London-based business said it will use the funding to achieve deeper penetration across Europe and expand into new markets.

The latest round of funding, which the company said is the largest ever raised by a UK-founded InsurTech, was led by DST Global and included General Catalyst, whose founder and managing director Joel Cutler joined Zego’s board.

All Zego’s existing investors participated in the latest round, including TransferWise founder, Taavet Hinrikus, Target Global, Balderton Capital, Latitude and others.

Zego has now raised more than $200 million since launching in 2016 and said its premiums exceed $100 million.

The InsurTech confirmed it will continue investing in technology, following its recent acquisition of telematics company Drivit.

Zego also said it will prioritise its fleet offering, in response to increased demand for new mobility services, and continue to invest in its product, engineering and data science teams.
In addition, Zego said it aims to double headcount by the end of 2021.

“This latest round of funding is a huge milestone for Zego,” said Sten Saar, chief executive and co-founder of Zego. “It is a testament to our relentlessly hard-working team and a clear validation of the need for Zego’s products in the market.”

“That being said however, we see this investment as simply another step in our journey towards powering opportunities for businesses across the world.”

“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.”

He added: “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.”

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