Comprehensive cloud-native insurance core system Socotra has closed a $50 million Series C funding round led by Insight Partners, highlighting the company’s rapid growth and success, with annual recurring revenue (ARR) increasing more than 9.5x over the last three years.
The funding will be used to further expand product functionality, broaden its reach throughout Europe and Australia, augment customer success infrastructure to support its rapidly growing customer base, and continue extending ecosystem capabilities through Socotra Marketplace.
Existing investors 8VC, Portage Ventures, Brewer Lane, MS&AD Ventures, and Nationwide Ventures also participated in this round, bringing total funds raised to date to $96 million.
Founded in 2014, Socotra offers the insurance industry a powerful core platform as an alternative to the fragile, monolithic policy administration systems of the past.
With 17 new insurtech customers in 2021 alone, Socotra now powers dozens of different insurance products for insurers across three continents.
Customers include major carriers like AXA, Mutual of Omaha, Symetra, MS Amlin, and IAG, as well as leading insurtech MGAs such as Hippo and Bamboo Insurance.
Dan Woods, Founder and CEO of Socotra commented: “Many of today’s core system providers bill themselves as modern without having basics like documentation or continual upgrades.
“In stark contrast, Socotra is API-driven, well-documented, cloud-native, and a true off-the-shelf product.
“What takes legacy technology months or even years with armies of custom developers, Socotra’s customers can accomplish in weeks—and then upgrades are free, automatic, and non-interruptive.
“Now with the support of Insight Partners, Socotra is positioned to scale faster and deliver even more value for the insurance community in the years ahead.”
Jonathan Rosenbaum, Managing Director at Insight Partners added: “Socotra is a truly next-generation platform, which allows customers to embrace cloud-native software via APIs and a microservices architecture.
“This innovation improves speed of delivery and reduces total cost of ownership for innovative insurers who want to launch new products or rearchitect existing lines of business.
“Ultimately, this leads to material value for the end consumers looking for customised insurance products with fast time to purchase. We at Insight are excited to partner with Socotra on this next chapter of its growth journey.”
