Jerry raises $75M at a $450M valuation to build a car ownership ‘super app’

Just months after elevating $28 million, Jerry introduced at the moment that it has raised $75 million in a Series C spherical that values the corporate at $450 million.

Existing backer Goodwater Capital doubled down on its funding in Jerry, main the “oversubscribed” spherical. Bow Capital, Kamerra, Highland Capital Partners and Park West Asset Management additionally participated within the financing, which brings Jerry’s complete raised to $132 million since its 2017 inception. Goodwater Capital additionally led the startup’s Series B earlier this year. Jerry’s new valuation is about “4x” that of the corporate at its Series B spherical, in accordance to co-founder and CEO Art Agrawal

“What factored into the current valuation is our annual recurring revenue, growing customer base and total addressable market,” he informed TechCrunch, declining to be extra particular about ARR aside from to say it’s rising “at a very fast rate.” He additionally mentioned the corporate “continues to meet and exceed growth and revenue targets” with its first product, a service for evaluating and shopping for car insurance coverage. At the time of the corporate’s final elevate, Agrawal mentioned Jerry noticed its income surge by “10x” in 2020 in contrast to 2019.

Jerry, which says it has developed its mannequin to a mobile-first car ownership “super app,” goals to save its prospects money and time on car bills. The Palo Alto-based startup launched its car insurance coverage comparability service utilizing synthetic intelligence and machine studying in January 2019. It has quietly since amassed almost 1 million prospects throughout the United States as a licensed insurance coverage dealer.

“Today as a consumer, you have to go to multiple different places to deal with different things,” Agrawal mentioned at the time of the corporate’s final elevate. “Jerry is out to change that.”

The new funding spherical fuels the launch of the corporate’s “compare-and-buy” marketplaces in new verticals, together with financing, restore, warranties, parking, upkeep and “additional money-saving services.” Although Jerry additionally presents a related product for residence insurance coverage, its focus is on car ownership.

Agrawal informed TechCrunch that the corporate is on observe to triple final 12 months’s coverage gross sales, and that its coverage gross sales quantity makes Jerry the primary dealer for a few of the highest 10 insurance coverage carriers.

“The U.S. auto insurance industry is an at least $250 billion market,” he added. “The market opportunity for our first auto financing service is $260 billion. As we enter more car expense categories, our total addressable market continues to grow.”

Image Credits: Jerry

“Access to reliable and affordable transportation is critical to economic empowerment,” mentioned Rafi Syed, Jerry board member and basic associate at Bow Capital, which additionally doubled down on its funding within the firm. “Jerry is helping car owners make the most of every dollar they earn. While we see Jerry as an excellent technology investment showcasing the power of data in financial services, it’s also a high-performing investment in terms of the financial inclusion it supports.” 

Goodwater Capital Partner Chi-Hua Chien mentioned the agency’s recurring income mannequin makes it stand out from lead generation-based car insurance coverage comparability websites.

CEO Agrawal agrees, noting that Jerry’s high-performing annual recurring income mannequin has made the corporate “attractive to investors” as well as to the truth that the startup “straddles” the auto, e-commerce, fintech and insurtech industries.

“We recognized those investment opportunities could drive our business faster and led to raising the round earlier than expected,” he informed TechCrunch. “We’re eager to launch new categories to save customers time and money on auto expenses and the new investment shortens our time to market.”

Agrawal additionally believes Jerry is completely different from different auto-related marketplaces on the market in that it goals to assist customers with numerous facets of car ownership (from restore to upkeep to insurance coverage to warranties), slightly than only one. The firm additionally believes it’s set other than opponents in that it doesn’t refer a client to an insurance coverage provider’s website in order that they nonetheless have to do the work of signing up with them individually, for instance. Rather, Jerry makes use of automation to give customers custom-made quotes from greater than 45 insurance coverage carriers “in 45 seconds.” The customers can then signal on to the brand new provider through Jerry, which might then cancel former insurance policies on their behalf.

Jerry makes recurring income from incomes a share of the premium when a client purchases a coverage on its website from carriers reminiscent of Progressive.

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