Auto InsurTech platform Root Insurance has collected $51m in its Series C funding round led by Redpoint Ventures.
Scale Venture Partners and existing partners Ribbit Capital and Silicon Valley Bank Capital Partners also participated in the investment.
Ohio-based Root is an auto insurance app that provides users with better rates through its own rating algorithm. Consumers get a personalised quote based on their driving behaviour, this includes aspects like hard brakes, aggressive turns and mileage driven. Through this method, the company claims drivers can save up to 52 per cent more.
Through the app, users can make claims, invite other household members to the app= to make savings, cancel policies and view insurance cards.
Launched in 2016, the company is used across 12 US states: Arizona, Indiana, Illinois, Kentucky, Louisiana, Mississippi, Montana, Ohio, Oklahoma, Pennsylvania, Texas, and Utah. By 2019, the Root hopes to be nearly national.
Equity from the round will be used to expand operations to more states and further investment in its technology to boost customer experiences.
Root CEO and co-founder Alex Timm said, “Our technology allows us to give drivers rates based primarily on factors they can actually control, bringing fairness to a broken and antiquated industry. We are leveraging mobile technology and artificial intelligence to reimagine the way insurance works.”
This transaction marks the second FinTech deal completed by Redpoint Ventures, with the firm previously contributing to the $40m Series D round of HR and Payroll company Justworks.
Earlier in the month, fellow auto insurance platform rateGenius completed a recapitalisation and growth investment from Tritium Partners. The company offers a digital refinance origination and marketplace for auto insurance.
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