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Pay-as-you-go insurance provider Zego closes Series A

Zego, a pay-as-you go insurance provider, has raised a £6m Series A from Balderton Capital.

The London-based startup also drew support from existing backer LocalGlobe and angel investors from the insurance sector.

Currently, Zego provides specialist insurance cover to delivery drivers using cars and scooters.

Harry Franks, chief executive at Zego, said: “Zego provides hardworking drivers with the tools to make gig economy jobs work for them. Before we came along drivers who wanted to work flexibly and part-time were ill-served by the insurance industry and were forced to pay for insurance cover they did not use. We’re delighted that Balderton wants to work with us as we develop pay-as-you-go policies for the fast-growing numbers of self-employed and sharing economy workers.”

Rob Moffat, partner at Balderton Capital, explained why his firm decided to invest in the young startup: “At Balderton we have been looking in depth at tech companies in insurance over the last few years. Zego really stood out with their innovative insurance products solving a major problem for drivers.

“They are in a new and fast evolving market that traditional insurers find it hard to adapt to. We were blown away by the execution speed of Harry, Sten, Stu and team and their ambitious plan to offer a wider suite of insurance products that resolve many of the problems gig economy workers face.”

Suzanne Ashman, partner at LocalGlobe, concluded: “We love the work that the Zego team has done to re-think insurance for an important and growing part of the economy. We’re very excited that Balderton is supporting the company through their next phase of growth.”

Set up by former Deliveroo employees last year, Zego will use the cash to hire more engineers as it eyes international expansion in the next six months.

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