Auto coverage early-stage firm Root Insurance received $350 million in the recently concluded Series E funding round, reports Crunchbase. This brings the company’s pool up to $523 million and its market value to $3.65 billion. The Series U round was headed by DST Global and Coatue.
With the funding it acquired in the Series E round, the company is set to push through with its development projects. This includes product innovation, as well as the formulation of expansion plans.
All in all, Root Insurance has obtained $527.5 million in the five funding rounds it participated in. It has a total of 8 investors with 6 of them being lead investors. According to Crunchbase, the firm brings in $6 million in revenues every year.
The Ohio firm is seen as an innovator within the $250-billion car coverage industry in the United States, says BusinessWire. DST Global Managing Partner Tom Stafford said that the firm plays a huge role in changing the auto coverage landscape. by “leveraging technology and data to offer consumers lower prices, transparency and fairness.”
It was established back in 2015 with the aim of using technology to determine insurance rates and fees for drivers. To this end, the company uses a mobile application to monitor and rate the driving behaviors of users. This is based on the idea that great drivers are “less likely to get into accidents,” which is why they “should pay less for insurance.”
According to Root, its services offer a “modern alternative” to legacy car coverage holders. The app monitors driving habits including braking, driving times, route regularity and speed of turns to determine “who is a safe driver and who isn’t.”
While Root is a leader in the tech-based car insurance sector, it now has strong competition including Insurify, Goji and CoverHound.