For the third year in a row, DC insurance tech company Pie Insurance has raised a huge megaround to support the company’s growth.
Today, Pie announced that it had raised a $315 million Series D round led by Centerbridge Partners and Allianz X. White Mountains Insurance Group, Gallatin Point Capital, Greycroft and Acrew Capital also took part in the round. According to Pie’s team, the raise has boosted the company’s total funding to $615 million and is the largest financing round for a US-based insurance tech company this year.
The fresh funds follow a period of growth for Pie, through which it doubled its gross written premiums (the total premiums an insurer writes during a specific period before deductions) and numbers of policyholders and partners. It’s also moved into two new states and expanded its workers’ comp. In 2021, Pie raised $118 million for its Series C, led by Allianz X, following a $127 million Series B in 2020.
Pie Insurance cofounder and CEO John Swigart told Technical.ly that the funding is a strong move for Pie, leading up to its long-term strategy of owning the entire insurance experience from start to finish.
“Today’s funding is a validation of the impact Pie has made on the small business insurance industry in a short period of time,” Swigart said. “While it’s been a challenging fundraising environment for growth-stage companies, Pie’s focus on applying technology to deliver strong underwriting and pricing results, while also building a world-class user experience, is proving to be a key differentiator.”
The new funds, Pie said, will help its work providing insurance to 32.5 million small businesses in the US. With the money, the company will be expanding into new lines of business, becoming a full-stack carrier and continuing the development of its algorithms. According to Swigart, the raise also enables a huge hiring sweep.
“We have solid growth plans in place and anticipate expanding roles across nearly every function and team at Pie,” Swigart said.
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