Mexico-based InsurTech company Crabi has reportedly collected $4m in seed funding, to support its mission of improving auto insurance in the country.
The round was led by Kaszek Ventures, with commitments also coming from Tuesday Capital and Redwood Ventures, according to a report from Crowdfund Insider.
Crabi claims there are over 50 million cars in Mexico, but only 30% are insured. To solve the problem, Crabi claims to be the first startup in the country to receive a license to be a risk-carrier and full-stack auto insurer.
Prior to the round, the InsurTech company was bootstrapped, and the fresh capital will help it accelerate its growth. During 2021, Crabi has xpanded across Mexico and hopes to enter new markets in Latin America soon.
Crabi is a digital platform for auto insurance, which helps consumers quickly get cover through a mobile app.
Crabi CTO Daniel Bernardez told Crowdfund Insider, “With a bit of tech effort and considering how big the market is, we can change the industry. However, we don’t want to change it slightly; we will go all in and change it dramatically. We will solve this problem, make an awesome product, and make it massive. Our users trust us, and we keep them on the road.”
There have been a handful of FinTech investments in Mexico this year. Most recently, SoftBank deployed $150m into investment platform Grupo Bursátil Mexicano.
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