The Zebra has announced disclosing US$38.5M Series C funding round as the insurance marketplace race heats up.
The Zebra, an Austin, Texas-based insurance comparison site, announced Wednesday morning disclosing US$38.5 million Series C funding round.
The round was led by Accel with participation from Weatherford Capital and current investors Silverton Partners, Daher Capital, Floodgate Fund, Ballast Point Ventures, and The Zebra’s CEO, Keith Melnick. Floodgate and Weatherford Capital also invested in the round. It had raised $61.5 million from investors including Mark Cuban prior to this latest round.
The company plans to use the funds to develop its business reach.
The Zebra was founded by Adam Lyons. It was originally known as Insurance Zebra and was initially started in Pittsburgh, Pennsylvania. To date, the company compares rates from over 200 insurance carriers.
The Zebra joins competing startups, including Insurify($32 million), Gabi($27 million), and Policygenius($100 million) in raising new capital this year.
The company has over 1.2 million website visitors per month. With its dynamic, real-time quote comparison tool, drivers can identify insurance companies with the coverage, service level, and pricing to suit their needs.
The firm also provides agent support and educational resources to ensure drivers are equipped to make the most informed decisions about their home and auto insurance.
The company’s revenue grew almost 200% year over year to nearly $37 million in 2019. Their annual run rate is now exceeding $60 million, more than half of which is driven by users coming organically to The Zebra’s website. Revenue is expected to grow over 100% in 2020.
According to Keith Melnick, CEO of The Zebra, the company had targeted a final sum closer to $30 million, but interest in putting more capital into the business by the company’s extant investor set led to a larger Series C. The Zebra previously raised a number of Seed rounds and a $17 million Series C led by Ballast and a $40 million Series B led by Accel.
Melnick also added on his statement that, The Zebra is improving customer acquisition costs over time, as it is also improving its revenue generation (both categories on a unit basis), implying that the company isn’t spending its capital on driving artificial growth.