Lemonade receives $300m in funding to accelerate expansion

Lemonade has announced $300m in series D funding in a bid to support the insurtech’s expansion to Europe.

The funding round was led by Softbank Group. Allianz, General Catalyst (which was previously known as Google Ventures), OurCrowd and Thrive Capital also participated, bringing the company’s funding up to $480m in total in its three-year history.

The insurtech said it plans to use the funds to accelerate its US and European expansion in 2019 as well as exploring other product lines.

The transaction is subject to customary closing conditions including regulatory approvals is estimated to close in Q2 2019.

The news follows Lemonade announcing its expansion plans outside the US last November.

Expansion

Daniel Schreiber, chief executive and cofounder at Lemonade, explained: “In less than three years, Lemonade has expanded across the US, given back to dozens of charities chosen by our community, and fundamentally changed how a new generation of consumers interacts with insurance.

“Looking forward, we aspire to create the 21st century incarnation of the successful insurance company: a loved global brand that can endure for generations; an organization built on a digital substrate, enabling ever faster and more efficient operations, and ever more delighted consumers.”

Shu Nyatta, a senior investment professional at SoftBank Group and Lemonade oard Memmber, added: “We’ve watched Lemonade transform insurance using big data and AI, reaching half a million homes in a little over two years - a shockingly rapid pace.

“And we’re confident that the best is yet to come. The value Lemonade provides, together with the values baked into its model, are fast making it one of the most intriguing, differentiated and compelling brands.”

Lemonade was founded in 2016 and offers digitalised renters and home insurance.