Salvadoran InsurTech Sostengo secures $3.8m in funding round

March 14, 2024

Sostengo, a Salvadoran InsurTech, has secured $3.8m in its latest funding round as it looks to expand its digital insurance solutions to underserved markets.

Following the tranche, the company is poised for significant growth and has earmarked an additional $1m allocated for entering the U.S. market, according to Contxto.

The investment round saw participation from PeopleFund, establishing a joint operation through one of its subsidiaries.

Sostengo’s innovative approach has led to a remarkable 103% year-over-year growth in premiums sold, underscoring its substantial impact and rapid expansion within the insurance sector.

Despite the growing number of vehicles in Central America, less than 10% are insured, representing a vast unprotected segment. Sostengo aims to bridge this gap by offering a consumer-centric, customisable, and accessible insurance solution.

Their platform enables users to quote, customise, purchase policies, report incidents, receive emergency assistance, and complete payment processes entirely via mobile, revolutionising the traditional insurance model and promoting insurance as a vital long-term investment.

Estuardo Escobar, CEO of Sostengo, commented, “We are excited to continue evolving the industry and position ourselves as pioneers in the digitalisation of insurance in the region. This new funding round will not only allow us to continue growing in Central America but also introduce our tailored solution to U.S. Hispanics, jointly with key investors and industry experts by our side.”