American auto insurance start-up Root Insurance is set to complete a $350m Series E funding round led by new investors Coatue Management and DST Global.
With completion of the latest round, Root Insurance’s valuation has surged to $3.65bn, reported The Wall Street Journal.
The round was also joined by the company’s existing investors.
Established in 2015, Root Insurance leverages telematics and mobile phone-based technology to measure drivers’ behaviours and uses it as the primary factor to decide rates.
While considering drivers’ behaviours, the insurer takes into account the drivers braking patterns as well as speed and reward them with cost-effective insurance premiums.
Leveraging Root technology, the safe drivers can save up to 52% on their car insurance premiums.
In August last year, the car insurer raised $100m in a Series D funding round led by Tiger Global Management. Other investors such as Redpoint Ventures, Ribbit Capital and Scale Venture partners also participated in the round.
During the first six month of 2019, Root wrote $133.4m in insurance premiums, which was 12 times higher the company earned during the corresponding period in 2018.
Recently, Root Insurance forayed into California where it will offer quick and easy auto insurance to drivers. Root is a direct-to-consumer auto insurance product and doesn’t sell insurance through agents.