South Korean digital insurance carrier Carrot has raised $250m in a round led by Affirma Capital.
Established in 2019, Carrot is on a mission to advance outdated insurance and deliver coverage that is fair and reliable through the use of technology.
Carrot said the capital will be raised across two connected rounds with wide participation of existing investors. The initial round of $145m was closed in the past week and the remaining $105m will be raised through the extended round during the fourth quarter of this year.
Upon completing its extended round of financing next quarter, Carrot’s valuation will reach 1 trillion won (US $850 million), taking it one step closer to becoming the nation’s first unicorn digital insurer. With the fresh capital, Carrot intends to strengthen its position as a pioneer in the existing market, accelerate its advancement of tech capacity and expansion of in-house pipelines, as well as external open innovation activities. The company anticipates faster rate of growth in coming years and plans to reach break-even by 2024 and go public by 2025.
arrot claims to be the nation’s first fully-licensed 100% digital insurance carrier. The company said it has been disrupting the insurance market and outpaced its global peers in terms of the speed of acquiring customers to its usage-based insurance programme.
Carrot said it offers easy and accessible insurance, transparent premiums, AI automated accident registration and prompt dispatch of help services all made possible via proprietary technology. The company is also pursuing business in pay-as-how-you-drive auto insurance, which assesses the premiums as per customer’s driving patterns and behaviour through sensor data analytics.
Richard Moon, the recently named new CEO of Carrot said, “I am delighted to welcome our new investors and thank our existing shareholders for their continued support and confidence in Carrot. We have made very significant milestone while keeping the J-curve growth at even a faster pace, which I believe is driven by surging demand for simple and innovative insurance products to meet evolving customer needs in today’s world.” He continued, “Our big focus will be on agile and open innovation, which will speed up product development and technological innovation to fast-forward the future of insurance.”
Earlier this year, Carrot partnered with e-commerce shopping platform Naver for shipment return insurance.
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