- The startup has already received three other investment rounds led by BTG Pactual and the monashees and Canary funds;
- The new resources will be used to double the team, today of 120 people.
Brazil-based insurance startup Pier announced on Thursday that it has raised a $20 million investment led round by Raiz Investimentos as it seeks regulatory approval to expand into the auto sector and life and home insurance.
Currently, Pier sells insurance for smartphones and cars through a digital platform and is the first one in Brazil authorized to operate under the simplified regulatory regime of the Superintendence of Private Insurance (Susep, in its Portuguese acronym).
Since it was founded in 2018, the startup has already undergone three other rounds led by BTG Pactual and the monashees and Canary funds.
According to co-founder and CEO of Pier, Igor Mascarenhas, the new funds will be used to double the team, now 120 people, and strengthen the capital to obtain the definitive license.
In the current category, the startup can only sell insurance for cars valued up to BRL 100,000 and the policies do not cover damage to third parties. But with the demand for financial services in Brazil spreading to the insurance industry as well, the company wants to accelerate the pace.
The expectation of the insurtech, the jargon used for insurance startups, is to reach December with annualized revenue of BRL 60 million, an increase of 250% over the end of 2020.
“We are asking at Susep to get out of the sandbox,” Mascarenhas told Reuters, referring to the ongoing process to be a level 3 insurer, on a scale of 1 to 5, and which he said could happen by next year.
In possession of the definitive license, besides being able to sell more complete policies, the company plans to also sell a home and life insurance.
(Translated by LABS)