Root Insurance, a car insurance company based in Ohio, has raised $100m in a Series D funding round led by Tiger Global Management.
Tiger Global Management was joined by existing backers Redpoint Ventures, Ribbit Capital, and Scale Venture Partners in the funding round. The fundraising takes the auto insurer’s valuation to $1bn.
Root Insurance plans to use the new capital to expand footprint in existing markets and foray into new geographies.
The insurer also aims to use the funds to accelerate hiring, with focus on engineers, actuaries, claims, as well as customer service.
The deal is slated to be completed in the fourth quarter of this year, subject to regulatory nod.
Root Insurance co-founder and CEO Alex Timm said: “This additional capital will allow us to accelerate our strategy to transform the car insurance world and reinvent a broken industry from the ground up by setting the new standard for how customers buy and use insurance.”
Established in 2015, Root Insurance measures driving behaviour leveraging smartphone technology and uses it to determine insurance rates.
The insurer currently operates in Arizona, Arkansas, Delaware, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Montana, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Texas and Utah.
It intends to expand to all 50 US states and Washington, D.C., by the end of next year.
Tiger Global Management partner Lee Fixel said: “We look forward to growing our partnership with Root and helping them expand their footprint across the United States.”