Brazil-based insurtech Justos has announced it has raised US$35.8mn in a Series A funding round led by Ribbit Capital. Other participants in the round included SoftBank’s Latin American Fund and GGV who participated as new investors, in addition to existing backers Kaszek, BigBets, Nubank CEO David Velez and Kavak CEO Carlos Garcia Ottati.
The insurtech aims to use its funding to continue to hire, and expand its area of operations, as well as toward launching other lines of insurance. The startup has a team of 30 with the goal of having 50 employees by year’s end and 200 by the end of 2022.
Nick Shalek, general partner at Ribbit Capital, said his firm invested in Justos “because of the huge market opportunity and the caliber and technical prowess of the team. With over 20 years of experience in Silicon Valley as entrepreneurs and at Netflix, Airbnb, and ClassPass, we believe that the Justos team is well-positioned to reinvent insurance in Latin America by focusing on creating customer value, lowering prices and expanding the market.”
Who is Justos? Company profile
Founded by CEO Dhaval Chadha, Justos is a Brazillian insurtech startup specialising in automotive insurance. Justos aims to improve the whole auto insurance process in Brazil by measuring the way people drive to help price their insurance policies. The company intends to collect users’ data through their mobile phones so that it can “more accurately and assertively price different types of risk.” The startup claims it can offer plans that are up to 30% cheaper than traditional plans, and grant discounts each month, according to the driving patterns of the previous month of each customer.
Taking more about what the company does, Chadha told TechCrunch: “We measure how safely people drive using the sensors on their cell phones,” Chadha told me at the time of the company’s last raise. “This allows us to offer cheaper insurance to users who drive well, thereby reducing biases that are inherent in the pricing models used by traditional insurance companies.”
Justos also plans to use artificial intelligence along with computerised vision to analyse and process claims more quickly and machine learning for image analysis and to create bots that help accelerate claims processing.
Along with CEO Dhaval Chadha, the company was co-founded by Jorge Soto Moreno and Antonio Molins. They met while playing football for an amateur team in San Francisco.