Zego, an insurtech startup based in London, UK, has completed a Series-B funding round, raising US$42 million, which it will put towards its expansion strategy.
The startup specialises in insurance for gig economy workers in the UK, Ireland and Spain, such as those working for Deliveroo and Uber; it already has partnerships with Deliveroo, Just Eat and Uber Eats, and is estimated to insure one-third of the UK’s food delivery market. As this segment shows no signs of shrinking, Zego plans to double its workforce from 75 to 150 and move into new European markets.
Among those taking part in the recent funding round were fintech company Transferwise and Germany-based food delivery platform Delivery Hero. Transferwise’s Founder Taavet Hinrikus commented: “I’ve been following Zego for some time and have been hugely impressed by the team and its ability to rapidly roll out innovative new insurance products and quickly gain market share. This investment will be a springboard for further growth that will see it continue to shake up the insurance sector.”
“When we built Zego from scratch three years ago, our mission was to transform the insurance sector by creating products which truly reflected the rapidly changing world of transport,” said Zego Co-Founder and CEO – and former Deliveroo employee – Sten Saar. “The world is becoming more urbanised, and because of this, we are moving from traditional ownership of vehicles to shared usership. This means that the rigid model of insurance that has existed for hundreds of years is no longer fit for purpose. We are extremely proud to be at the forefront of change.”