Brazilian Insurtech Justos Raises $ 35.8 Million in Series A Led by Ribbit Capital
Justos, a startup that says it will be the first insurance company in Brazil to use data to determine rates, has raised a $ 35.8 million Series A funding round led by Ribbit Capital.
SoftBank’s Latin American Fund and GGV participated as new investors, in addition to existing backers Kaszek, BigBets, David Velez, CEO of Nubank and Carlos Garcia Ottati, CEO of Kavak..
In May, Justos announced a $ 2.8 million fundraiser that included the participation of Kaszek, one of Latin America’s largest and most active venture capital firms, and CEOs of several unicorns, including Assaf Wand, CEO and co-founder of Hippo Insurance; Sergio Furio, founder and CEO of Creditas; Patrick Sigrist, founder of iFood and Fritz Lanman, CEO of ClassPass. Senior executives from Robinhood, Stripe, Wise, Carta and Capital One had also put money in the round.
Serial entrepreneurs Dhaval Chadha, Jorge Soto Moreno and Antonio Molins co-founded Justos, having recently worked at various Silicon Valley companies including ClassPass, Netflix and Airbnb. The trio, ironically none of which is Brazilian,met while playing soccer on an amateur team in San Francisco.
It is notable that Justos has yet to officially launch its product and has already attracted such a large group of high profile investors. According to CEO Chadha, its launch is “imminent” and the company already has 12,000 “prospects” on its waiting list. So far it has launched a test drive and quote app and before its official launch it has collected the data from the test drive.
The process of getting insurance in the country, anyway, is slow. It takes up to 72 hours to receive the initial coverage and two weeks to receive the final insurance policy. Insurers are also taking their time to resolve claims related to damage and loss of cars from accidents, contractors say. They also claim that the prices are often not fair or transparent.
Justos aims to improve the entire auto insurance process in Brazil by measuring how people drive to help price their insurance policies. Similar to Root here in the US, Justos intends to collect user data through their mobile phones so that they can “more accurately and confidently assess different types of risk.” In this way, the startup claims to be able to offer packages up to 30% cheaper than traditional packages and give discounts each month, depending on the driving habits of the previous month of each customer.
“We measure people’s driving safety using sensors on their cell phones,” Chadha told me during the company’s latest pay raise. “This allows us to offer cheaper insurance to users who drive well, reducing the biases inherent in the pricing models used by traditional insurance companies. “
Justos also plans to use artificial intelligence and computer vision to analyze and process complaints faster and machine learning for image analysis and to create robots that help speed up complaints processing.
The company also has a social good component. The startup agreed to support five non-profit organizations in its first year: Instituto Ayrton Senna (education), AACD (disability), Gerando Falcões (economic opportunity), Casa 1 (LGBTQ) and Conexsus (sustainable development in the Amazon. ).
It intends to cap its profits so that part of the amount that is not used to pay claims is returned to these institutions in its first year of operation.
The company declares: “Partnerships reinforce the disruptive vision of insurtech which, as its name suggests, aims to build a more transparent relationship with its customers and to contribute effectively to the improvement of society.
Insurtech plans to use its new capital to continue hiring and expand its area of operations, as well as towards the launch of other lines of insurance. The startup has a team of 30 people with the goal of having 50 employees by the end of the year and 200 by the end of 2022.
Nick Shalek, general partner of Ribbit Capital, said his company has invested in Justos “because of the huge market opportunity and the caliber and technical prowess of the team.”
“With over 20 years of experience in Silicon Valley as entrepreneurs and at Netflix, Airbnb and ClassPass, we believe the Justos team is well positioned to reinvent insurance in Latin America by focusing on creation. of customer value, falling prices and expanding the market, ”he wrote via email.