Even before launching its product on the market, the car insurance startup Justos announced a US$ 35 million Series A this Monday (25). Ribbit Capital led the round, which also had the participation of SoftBank‘s fund for Latin America, and GGV.
The Brazilian startup claims to be the first car insurance company to use smartphone data to reward safe drivers and offer more reasonable prices.
“Even before our official product launch, we achieved the support from big investors, which demonstrates that we are on the right path to disrupt the insurance market in Brazil“, says Justos CEO, Dhaval Chadha.
The insurance company says it will use the infusion in cash to hire more people as well as to expand its geographic reach and launch different coverage options.
Justos was founded by Chadha alongside Jorge Soto Moreno and Antonio Molins, associates who met in Silicon Valley. In May, the company raised R$ 15 million in an initial round led by Kaszek and with participation by Big Bets, in addition to investors David Vélez, from Nubank, Sergio Furio, from Creditas, Patrick Sigrist, founder and former CEO of iFood, Carlos Garcia, from Kavak, Assaf Wand, from Hippo Insurance, and Fritz Lanman, from Classpass.
Data tracking and social partnerships
The startup develops a platform that tracks cell phones data to assess how well the drivers perform acceleration, breaking, maneuver, and respect the speed limit. It also follows how focused is the driver and whether the person uses the cell phone while drives.
The technology helps Justos offer up to 30% more affordable auto insurance plans than the competition. The Brazilian startup can even grant additional discounts each month, based on the customers’ direction in the previous months.
The startup claims that it has entered into partnerships with five organizations (AACD, Instituto Ayrton Senna, Gerando Falcões, Casa 1 and Conexsus) that will receive part of the unused money to pay claims.
“Receiving the largest A-series contribution (for a pre-operational startup) in the history of Latin America, we have a great responsibility. In the coming months, we will work to launch our product and provide a differentiated experience for our customers”, reinforces the CEO.