Sigo Seguros raises $5.1 million

Car insurance startup Sigo Seguros has raised an additional $5.1 million in its pre-Series A funding round, co-led by Zeal Capital Partners and Listen Ventures with participation from existing investors Chingona Ventures, Revolution’s Rise of the Rest, Fiat Ventures, and Remarkable Ventures.

Founded in 2018, the Austin-based startup targets immigrants and working-class communities with a “Spanish-first approach.” The funding will be used to continue “its rapid pace of growth,” expand customer-facing technology, and continue digitizing the underwriting process.

“We’ve been overwhelmed by the demand for our product, with referrals driving the majority of our growth. Our differentiated product starts with a deep understanding of our community and its needs. Zeal understands that access to the right financial products can turbocharge economic mobility for our customers, and this makes them an ideal partner for us to welcome to the team.” – Nestor Hugo Solari, co-founder and CEO of Sigo Seguros.

“Sigo Seguros created an insurance product that is purpose-built to support the needs of working-class Hispanic drivers. By going direct to the consumer with a digital-first approach, Sigo is able to drive greater access and lower costs for communities that need it most. I could not think of a better representation of our Inclusive Investing™ strategy, and we are fortunate to be on this journey with Nestor and his team.” – Andy Will, principal at Zeal Capital Partners.

Bottom Line: In 2022, Sigo generated $2.3M in direct written premium to Texas-based nonstandard car insurer Old American County Mutual; 14 MGAs produced premium that was higher than Sigo’s (a snippet from our upcoming report covering modern MGAs).