Lemonade Inc., an insurance financial technology startup, announced on Tuesday its signing of a $120 million Series C funding round led by SoftBank Group Corp. Lemonade has raised $60 million prior to SoftBank’s funding from previous investors such as, Allianz, General Catalyst, Google Ventures, Sequoia Capital, and others.
Lemonade has not disclosed its current valuation, but according to sources familiar with the matter, it can be estimated at more than $500 million.
The New-York based company is a licensed insurance carrier that offers homeowners and renter insurance using artificial intelligence and behavioral economics to reduce paperworks and use of workers. The use of AI on its platforms helps cuts expenses down. The service is currently available in eight states, while licensed in 17 more states.
Co-Founder and CEO, Daniel Schreiber said in an interview that growth has surpassed the company’s expectations. He projects to hit 90,000 customers by the end of the year, while the company was only targeting 13,000.
“SoftBank is an ideal partner for us and we are thrilled to have them on board,” said Shai Wininger, President and Co-Founder, Lemonade. “We share SoftBank’s conviction that big data and machine learning are set to profoundly remake our entire industry, and SoftBank has the vision and means to enable this common vision to become a reality.
“By combining big data and AI with a seamless user experience, Lemonade is truly revolutionizing the insurance industry,” said David Thevenon, a senior investment professional within the SoftBank Group.
The transaction is expected to close in the first quarter of 2018.