US-based auto insurtech company Sigo Seguros has secured $10.5m in a Series A funding round.
The funding round was led by Varco Capital and returning investor Listen, with contributions pouring in from Angeles Ventures and Flintlock Capital as well.
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Existing investors Zeal Capital Partners, Rise of the Rest and Fiat Ventures also took part in the fundraise.
Varco partner Rafael Varela will now become a member of Sigo Seguros’ board.
Established in 2019 and based in Texas, Sigo Seguros aims to offer affordable auto insurance to immigrant and working-class communities, with a focus on Latino and Spanish-speaking populations.
Its bilingual, mobile-first platform is said to remove extra fees and eliminates biased rating factors such as credit scores and employment status.
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By GlobalDataSigo Seguros plans to use the funding to expand its market footprint into regions with sizeable immigrant populations and limited auto insurance options.
The insutech company, which underwrites non-standard auto insurance, reported a 500% surge in gross written premiums in 2023.
Sigo Seguros said its underwriting technology is delivering profitable loss ratios, in sharp contrast to the volatile boom-and-bust cycles experienced by other auto insurtech companies over the past decade.
In July 2023, Sigo Seguros garnered $5.1m in its pre-Series A round, which was jointly led by Zeal Capital Partners and Listen Ventures.
Sigo co-founder and CEO Néstor Hugo Solari said: “The existing insurance industry overlooks the Latino community despite its outperformance in terms of loss ratios. Large, national insurance carriers intentionally ignore our customers and prioritise the use of credit score, while small, regional carriers provide antiquated service through opaque, fee-heavy independent agent channels.”
Varela added: “Varco Capital is excited to partner with Sigo Seguros to bring a modern approach to the non-standard auto insurance market. Nestor and team are focused on serving drivers with technology and a better experience, while saving them millions of dollars in down-payment fees. We are eager to support their much needed offering in the coming months and years ahead.”
