- Zego is in the process of raising $150 million led by DST Global, Insider understands.
- Founded in 2016, Zego provides flexible insurance in the gig economy age.
- The new funding would take the startup to around $200 million raised overall.
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Gig economy insurance startup Zego is in talks to raise $150 million in funding led by Twitter and Revolut-backers DST Global, Insider understands.
The round is likely to close in the next two weeks, Insider understands, and both deal timings and amount could change.
Zego, founded in 2016, is a startup which provides flexible insurance products ranging from minute-to-minute to annual cover. The startup has been growing rapidly alongside the wider gig economy, serving drivers for delivery companies like Deliveroo and Uber Eats. Two of the firm’s cofounders, Harry Franks and Sten Saar, previously worked for Deliveroo.
This funding round was competitive, with Zego receiving 18 term sheets for the deal, Insider understands.
Zego declined to comment. DST did not immediately respond to a request for comment.
The startup had previously raised $51 million from investors like Balderton Capital and Tom Stafford, a partner at DST Global. Others current backers include Latitude, Target Global, and Taavet Hinrikus, the cofounder of $3.5 billion money transfer app TransferWise.
In December, Zego bought telematics company Drivit. Zego holds an insurance license in the UK, allowing it to underwrite its own policies, the first UK insurance startup to do so. Post-Brexit, the firm will be able to do the same in continental Europe having secured a broking licence in the Netherlands. Zego operates in Ireland, France, Belgium, Italy, and Spain.
Zego claims to have provided over 230 million hours of insurance protection to over 110,000 vehicles since it was founded.