Auto insurtech Root Insurance has raised $350 million in a Series E funding round led by DST Global and Coatue, raising the firm’s total value to $3.65 billion.
The funding brings the total amount secured to $523 million, with an additional $100 million in debt financing, and will be leveraged to accelerate its growth in existing markets and help expand into new states with new product lines.
Root was founded in 2015 and utilises smartphone-based technology to analyse driving behaviour.
Customers get a quote by completing a test drive and purchase and manage their policy within a mobile app.
The firm recently expanded into its 29th state and wrote over $187 million in premiums in the first six months of 2019, a 824% growth over the same period in 2018.
“We are thrilled that our success continues to attract leading investors who recognize the impact Root has already had on the industry and the opportunity still ahead,” said Alex Timm, Co-founder and Chief Executive Officer of Root.
“This latest capital will allow us to extend our innovation lead and accelerate our strategy to transform the car insurance world for the benefit of consumers.”
Tom Stafford, Managing Partner of DST Global, added, “Root is transforming auto insurance, the largest property and casualty insurance market in the US, by leveraging technology and data to offer consumers lower prices, transparency, and fairness.
“We are delighted to support Alex and the team at Root as they continue to build a technology company within the insurance industry.”