Sirius-backed insurtech Pie attracts $127m to fund expansion
US small business-focused insurtech Pie Insurance has raised $127 million in new financing and capital commitments to fund its growth and expand operations.
Gallatin Point Capital joined Pie's current investors in the capital raise, including Greycroft, SVB Capital, Aspect Ventures, Elefund, and Sirius International Insurance Group.
Pie said the new financing includes $27 million to support the growth and expansion of its offering to small business owners. The additional $100 million equity capital commitment will support its strategic initiative to form and purchase licensed insurance companies.
Pie was founded in 2017 to provide workers' compensation insurance to small businesses. Pie has grown its written premium 150 percent to nearly $19 million in Q1 of 2020.
The insurtech is looking to form a new affiliated company, Pie Carrier Holdings, with Gallatin Point Capital as lead investor, to create and purchase licensed insurance companies.
Sirius Group is also investing directly in Pie Carrier Holdings and will continue to issue insurance policies offered by Pie.
John Swigart, Pie's co-founder and chief executive officer, said: "We're incredibly excited to partner with Matt and his team on this innovative approach toward solving one of the biggest challenges facing a growing insurtech company — building a capital structure that supports both our rapid growth and balance sheet needs. This financing enables Pie to continue our expansion, even during these uncertain times, while also forming the foundation for our future."
Ian Sigalow, co-founder and partner at Greycroft, commented: "Pie continues to demonstrate significant momentum, even in the current economic climate. We're pleased to help fuel the company's next stage of growth as they transform the market for small business insurance."
Matt Botein, co-founder and managing partner at Gallatin Point Capital, added: "We're impressed with the results Pie has achieved in such a short time period. We welcomed the chance to contribute to their expansion strategy in a meaningful way."