US motor insurtech Root raises $100m funding for expansion
Root Insurance, a car insurance startup that operates entirely via mobile technology, has raised $100 million in Series D funding, pushing the insurtech's valuation to $1 billion.
The latest round was led by New York-based Tiger Global Management, with investors including Redpoint Ventures, Ribbit Capital, and Scale Venture Partners.
Root said the funds will help the company accelerate its growth, geographic expansion, and talent acquisition plans with a focus on engineers, actuaries, claims, and customer service to support increased scale.
Founded in 2015, Root is headquartered in Columbus, Ohio and is backed by reinsurance companies including Munich Re and Odyssey Re.
Over the last two years, Root has expanded into 20 US states, with a more than 4,500 percent year-on-year increase in direct written premiums in the first six months of 2018. Root’s technology-enabled platform and unique pricing algorithm provide the ability to price auto insurance more accurately.
Root anticipates expanding into all 50 states and Washington, DC, by the end of 2019.
“We are excited that Root continues to attract the commitment and capital of some of the largest and most successful venture funds, like Tiger Global Management, who recognize the power of the Root platform and our prospects for growth and success,” said Alex Timm, co-founder and CEO of Root.
“This additional capital will allow us to accelerate our strategy to transform the car insurance world and reinvent a broken industry from the ground up by setting the new standard for how customers buy and use insurance,” Timm added.
Lee Fixel, partner at Tiger Global Management, added: “Root Insurance is leading digital innovation in U.S. auto insurance. This industry is ripe for change, and we are excited to invest in a team that has the expertise, vision, and momentum to deliver real results. We look forward to growing our partnership with Root and helping them expand their footprint across the United States.”
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