Zego raises $42M Series B to fund European expansion

London-based Zego has raised $42M in one of the largest funding rounds for a European insurtech start-up.

The Series B round was led by Target Global, with participation from TransferWise founder Taavet Hinrikus, Latitude, and existing investors including Balderton Capital.

Balderton previously led Zego's Series A round.

Zego provides flexible insurance for the gig economy, catering to the fast-growing market of new mobility services, such as ride-hailing, ride sharing, car rental and scooter sharing.

The firm currently insures a third of the UK’s food delivery market, largely through partnerships with Deliveroo, Just Eat and Uber Eats.

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.

Sten Saar, CEO and co-founder of Zego

Zego offers a range of policies from minute-by-minute insurance to annual cover, providing far more flexibility than traditional insurers.

The funding will help Zego enhance its tech platform and launch operations in several more European countries by the end of 2019, adding to its current bases in the UK, Ireland and Spain.

The investment comes amid an exponential growth period for the company. 

Zego has grown 900% over the past 12 months

To support this growth, Zego plans to double its workforce, looking to hire engineers, data scientists, and specialists in operations and pricing.

You can see their current job openings here

When Balderton first invested in Zego in 2017 we saw the opportunity to fill the gap in providing insurance for the gig economy. Zego has gone on to own this segment in the UK, and started solving the problems in commercial motor insurance for all forms of 'new mobility'. We are excited to double down on Zego as they continue their very rapid growth.

Rob Moffat, Partner, Balderton Capital

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