The car insurance startup Root Insurance secured $350 million on a $3.65 billion valuation in its Series E funding round. The news of the funding was first reported by Axios last month.
Root Insurance confirmed the news on Monday and came forward with specific details of the investment. DST Global and Coatue Management led the round, along with participation from previous investors Drive Capital, Redpoint Ventures, Ribbit Capital, Tiger Global Management, and Scale Venture Partners.
While there are thousands of car insurance companies across the nation, what makes Root Insurance different is its proprietary technology to understand the driving behavior of its customers.
The company operates with the mission that good drivers should pay less for their car insurance. The startup offers discounts of up to 52% based on the driving nature of its customers.
Launched in 2015 by Alex Timm and Dan Manges, the car insurance startup has raised a total of $527.5 million to date across 5 funding rounds.
The startup’s previous funding round exactly a year back in August 2018 that witnessed $100 million led by Tiger Global Management. Headquartered in Ohio, Root Insurance is the first car insurance company to gain the Unicron status.
Tom Stafford, Managing Director of DST Global, stated that Root was transforming auto insurance and casualty insurance market in the US, by leveraging technology to offer consumers lower prices, transparency, and fairness.
The company houses 700 employees across its facilities in downtown headquarters and Easton support office.
Root Insurance uses Android and IOS app to track the driving behavior of the drivers. Based on the 3 weeks driving trial, the startup will offer discounts to the drivers.
The discounts are determined using AI-powered algorithms that analyze the risks. Root Insurance states that good driving will lead to a lesser risk of accidents, and hence the drivers should pay less.
The company has stated that the latest investment would be used to scale up its operations in the existing 29 states and to enter new markets. It also plans to roll out new products to attract more customers.
Your rate 3 stars is recorded
StartupWorld is the destination to learn about new and upcoming startups making waves on the web. Being an entrepreneur is as much hard work as it is fun. No one knows it better than you do. Share your story, send it in and let us showcase it to the world.