Estonian-founded, London-based insurance startup Zego raises USD42 million

The Estonian-founded, London-based insurance startup, Zego, raised USD42 million in an investment round to fund the company’s European expansion.

The proceeds of the round will be used to fuel Zego’s expansion across Europe and double its workforce, the company said in a statement. The Series B investment was led by pan-European investment firm Target Global, specialists in the fintech and mobility space, with other backers, including the founder of another Estonian startup, TransferWise, Taavet Hinrikus.

Zego has now raised more than USD51 million. The investment comes amid an exponential growth period for the company, which has grown 900% over the past 12 months, the company said.

The startup will use the investment to 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.

Provides insurance for the gig economy

“To enable this rapid growth, Zego plans to increase its workforce from 75 to 150, with the company looking to hire engineers, data scientists and specialists in operations and pricing,” it said.

Zego was founded in 2016 to provide flexible insurance for the gig economy – a free market system in which temporary positions are common and organisations contract with independent workers for short-term engagements.

Zego’s founders Harry Franks (CCO), Sten Saar (CEO) and Stuart Kelly (CTO).

The company has since expanded its B2B offering to cater to the market of new mobility services, such as ride hailing, ride sharing, car rental and scooter sharing. The company offers a range of policies from minute-by-minute insurance to annual cover, providing far more flexibility than traditional insurers, with pricing based on usage data from vehicles.

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

Cover: Zego’s team in London.