Root, Inc. is the parent company of Root Insurance Company. The company announced the closing of a new term loan facility with BlackRock Financial Management Inc., on behalf of funds and accounts. The financing is a term loan facility, i.e., debt capital. The transaction was disclosed in a Form 8-K filed by the company. The filing text provided does not include the loan amount, interest rate, maturity, or stated use of proceeds. No operating metrics or prior funding rounds are mentioned in the available text. Root is an auto insurance provider that uses driver-based telematics and a "test drive" to determine individualized rates. The company offers temporary 30- or 60-day coverage while it assesses driving behavior and then issues rates based on observed performance. The article says Root is focused on improving its loss ratio and will likely pursue more aggressive marketing, promoting savings of "up to 52%." Founded in 2015, Root is available in 28 states and reaches roughly 60% of the U.S. population. The company has over 500 employees. Root has raised significant capital to date, including a recent $350M financing that contributes to its total of $527.5M raised. Root is a digital auto insurance company that sells car insurance and emphasizes cheaper premiums. The company positions itself as a digital innovator in U.S. auto insurance and says it aims to transform a broken industry. Root reports it continues to attract major venture funds and investor commitment. The business recently completed a financing that values the company at $1 billion. The company plans to use new capital to deepen penetration in existing markets, expand into new states, and fuel hiring. The article also notes Root has a budget for referral schemes as part of its growth efforts.

Total raised

$508M

Funding rounds

7

Latest round

Series E

Latest activity

Aug 2019