Root Insurance, a Columbus, Ohio-based car insurance company, raised $100m in Series D funding.
The round, which was led by Tiger Global Management, raised Root’s valuation to $1 billion. Redpoint Ventures, Ribbit Capital, and Scale Venture Partners all participated as follow-on investors.
The company intends to use the funds to deepen penetration in existing markets, expand into new states, and accelerate hiring plans, with a focus on engineers, actuaries, claims, and customer service to support increased scale.
Founded in 2015 by Alex Timm, CEO, Root is an auto insurance company that incorporates individual driving behavior in every quote. The company uses smartphone technology to understand individual driving behavior. Customers obtain their personalized quote after a two-to-three week test drive, and they can purchase and manage their policy entirely within the Root mobile app.
Over the last two years, Root Insurance has expanded into 20 states (Arizona, Arkansas, Delaware, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Texas and Utah). It now anticipates expanding into all 50 states and Washington, D.C., by the end of 2019.
The transaction is expected to close during the fourth quarter of 2018 and is subject to customary closing conditions and regulatory approvals. Current investors also include Drive Capital and Silicon Valley Bank.