Gabi raises $27 million Series B
Digital broker Gabi has raised $27 million in Series B funding, led by Mubadala Capital, the asset management arm of Mubadala Investment Company. Existing investors Canvas Ventures, Northwestern Mutual Future Ventures, Correlation Ventures, Securian Ventures, A.Capital Ventures and Project A also participated in the round. New investors to the round include CMFG Ventures, Burst Capital and AngelList.
The team will use this round of funding to accelerate its charter to become the primary destination to purchase and manage home and auto insurance. Their proprietary quoting flow allows customers to connect their existing insurance account or upload a PDF of their policy. Gabi then digitally compares consumers’ existing policies and coverages to quotes from its network of over 40 insurance companies to find the best prices and coverage.
“We see a huge opportunity in the space that Gabi operates in – most consumers want the help of an advisor for their insurance, and the opportunity to be a digital-first advisor to digital-first consumers is immense. This is a rapidly growing market and there are tens of billions of commissions paid every year to local agents that are still doing it the old way.” – New investor and board member Luke Nicklin of Mubadala Capital.
“Gabi’s insurance partners are very excited about the high quality of Gabi’s customers. Gabi is attracting bundled auto & home customers with higher annual premiums which ultimately results in lower loss ratios for insurance companies.” – Craig Schedler of Northwestern Mutual Ventures. Further, Gabi’s customer retention rate is more than double many other online insurance peers.
Today, Gabi works with more than 40 regional and national home and auto insurance carriers throughout the US, including Nationwide, Travelers, Progressive, Safeco, Encompass, Kemper and more. Gabi will expand its carrier partnerships in 2020.
Bottom Line: Jerry comes to mind.
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The old way of shopping for home and auto insurance was a hassle -- enough to drive anyone crazy, says Gabi Personal Insurance Agency. This is why the Gabi founder floats in with angel wings and demonstrates his service to a frustrated man, which purportedly saves customers over $800 a year on average.