Workers’ compensation insurer Pie Insurance, which serves businesses with fewer than 100 employees, has closed a $315 million Series D funding round. The goal of the funding round was to help Pie Insurance grow.
Not many people would have noticed if this had happened in 2021 when it actually did. However, in the current climate, where investors are becoming more cautious and the rate at which venture capital is being raised has substantially decreased, a $315 million round sticks out as particularly remarkable.
When Pie first opened for business in 2017, it had already raised over $615 million through multiple investment rounds. In direct proportion to this most recent investment round, that sum has climbed by more than a ratio of two.
They claim their investment round was the most successful of any U.S. property and casualty (P&C) insurtech company launched in 2018. That being said, TechCrunch has not independently verified these numbers.
No one was ever told the estimated value at any given time.
TechCrunch reports that the DC-based startup has grown its ARR to almost $300 million through the first four months of 2022. The company’s financial statements serve as the foundation for this data. The organization was helpful in providing this data.
This company offers online insurance for small and medium-sized businesses (SMBs) at a discounted rate by making use of data and analytics to better serve their clientele. Additionally, when comparing the first quarters of 2022 and 2021, the company’s gross written premium climbed by a multiple of more than two. Indeed, this was the situation in Q1 of 2022.
Between the beginning of 2021 and the beginning of 2022, the number of consumers with policies and the number of insurance brokers who work with Pie more than doubled.
Insurers can sell and buy policies on the Pie marketplace. There was also an increase in the number of people who chose Pie as their insurance provider. In addition, the number of people who have bought insurance from Pie has increased.
Centerbridge Partners, an investment firm, and Allianz X, the insurance giant’s digital investments arm, were the primary drivers of the capital round. In addition to previous backers Gallatin Point Capital, Greycroft, and Acrew Capital, a new investor, White Mountains Insurance Group, has joined this round of funding.
John Swigart, a key figure in the creation of Pie and the current CEO of the company, has issued a statement in which he calls this funding round “monumental” for a variety of reasons. This statement was made public because John Swigart characterized this specific fundraising round as “monumental” for more than one reason.
It’s no secret that startups, especially in the insurtech industry, may have trouble securing funding right now. In the current economic context, this is one of the many difficulties that must be overcome as per pie insurance smbs 118m series mayann.
Pie, on the other hand, stands out because of its unique ability to rapidly develop while still concentrating on attaining great unit economics and keeping loss ratios to a minimum. This helps set Pie apart from its competitors. This has helped Pie rise to the top of its field.
Restaurants, auto repair companies, landscapers, cleaners, handymen, and builders are just some of the many local businesses that benefit from Pie’s offerings.
Pie’s clientele includes not just individuals but also a wide range of regional enterprises. In addition to dealing directly with customers through its website, the company also employs a large network of thousands of independent insurance brokers to promote its products and services.
Centerbridge Partners’ managing director Eric Hoffman was keen to get involved after hearing about the company’s “amazing loss rates” and remarkable success across a number of distribution channels. He also wanted to be in a position of leadership for the project.
A founding partner of Acrew Capital, Lauren Kolodny, claims that only workers’ compensation insurance is required by law in the United States for commercial entities. According to Lauren Kolodny, here’s how things stand: Bear in mind that this is an important part of the deal as a whole.
This is great news for small business owners who have been struggling to find affordable workers’ compensation insurance. With this new round of funding, Pie Insurance will be able to expand its operations and provide even more competitive rates.
We encourage you to get a quote from Pie Insurance and see how much you could save on your workers’ compensation insurance premiums.
In the near future, Pie plans to use the newly obtained funds into developing the company into a full-stack carrier and expanding the company into other areas. At some point in the not-too-distant future, this growth could become a reality.