US-based auto insurtech firm Sigo Seguros has secured $10.5m in a Sequence A funding spherical.
The funding spherical was led by Varco Capital and returning investor Pay attention, with contributions pouring in from Angeles Ventures and Flintlock Capital as effectively.
Present traders Zeal Capital Companions, Rise of the Relaxation and Fiat Ventures additionally took half within the fundraise.
Varco associate Rafael Varela will now grow to be a member of Sigo Seguros’ board.
Established in 2019 and primarily based in Texas, Sigo Seguros goals to supply reasonably priced auto insurance coverage to immigrant and working-class communities, with a give attention to Latino and Spanish-speaking populations.
Its bilingual, mobile-first platform is claimed to take away additional charges and eliminates biased ranking elements equivalent to credit score scores and employment standing.
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Sigo Seguros plans to make use of the funding to broaden its market footprint into areas with sizeable immigrant populations and restricted auto insurance coverage choices.
The insutech firm, which underwrites non-standard auto insurance coverage, reported a 500% surge in gross written premiums in 2023.
Sigo Seguros mentioned its underwriting expertise is delivering worthwhile loss ratios, in sharp distinction to the unstable boom-and-bust cycles skilled by different auto insurtech corporations over the previous decade.
In July 2023, Sigo Seguros garnered $5.1m in its pre-Sequence A spherical, which was collectively led by Zeal Capital Companions and Pay attention Ventures.
Sigo co-founder and CEO Néstor Hugo Solari mentioned: “The prevailing insurance coverage trade overlooks the Latino neighborhood regardless of its outperformance when it comes to loss ratios. Giant, nationwide insurance coverage carriers deliberately ignore our prospects and prioritise using credit score rating, whereas small, regional carriers present antiquated service by means of opaque, fee-heavy unbiased agent channels.”
Varela added: “Varco Capital is happy to associate with Sigo Seguros to carry a contemporary strategy to the non-standard auto insurance coverage market. Nestor and workforce are centered on serving drivers with expertise and a greater expertise, whereas saving them thousands and thousands of {dollars} in down-payment charges. We’re wanting to help their a lot wanted providing within the coming months and years forward.”
