Austin, TX, September 10, 2024 — Sigo Seguros, the only digital-first non-standard auto insurance brand eliminating extra fees, has raised a $10.5M Series A led by Varco Capital and return investor, Listen. Angeles Ventures and Flintlock Capital participated in the round as well as existing investors Zeal Capital Partners, Rise of the Rest, and Fiat Ventures. Varco Capital is the family office of Rafael and Carlos Varela, the founders of Pronto Insurance, a leading non-standard auto franchise.
Sigo underwrites non-standard auto insurance, a massive yet overlooked vertical in insurance, where drivers are charged onerous fees and are pushed to accept hand written offers in broker-run brick and mortars. Sigo’s digital platform allows customers to acquire insurance in minutes from their phone while saving them hundreds of dollars per year, on average. Sigo is focused on the working class, initially serving Hispanic and Latino communities by offering an end-to-end experience in Spanish.
The offering has resonated with consumers as Sigo grew Gross Written Premiums by over 500% in 2023, reflected further in payback periods measured in weeks, rather than years as is normally the case in auto insurance. The Company’s underwriting technology is generating profitable loss ratios, which is in stark contrast to the boom and bust cycle of other auto insurtechs over the past decade.
“The existing insurance industry overlooks the Latino community despite its outperformance in terms of loss ratios. Large, national insurance carriers intentionally ignore our customers and prioritize the use of credit score, while small, regional carriers provide antiquated service through opaque, fee-heavy independent agent channels,” says Néstor Hugo Solari, Co-Founder and CEO at Sigo.
This financing positions the company for expansion to new markets with large immigrant communities and few suitable options for auto insurance all the while providing a best in class bilingual service to customers. In conjunction with the investment from Varco Capital, Rafael Varela will join the board of directors.
“Varco Capital is excited to partner with Sigo Seguros to bring a modern approach to the non-standard auto insurance market. Nestor and team are focused on serving drivers with technology and a better experience, while saving them millions of dollars in downpayment fees. We are eager to support their much needed offering in the coming months and years ahead.” said Rafael Varela, Partner at Varco Capital, who previously sold Pronto Insurance to Gallagher.
“We continue to see strong demand for a digital approach to serving our community with auto insurance. Rafael and Carlos built Pronto into one of the leaders in the non-standard auto insurance space. We are honored to have their support as we continue to revolutionize the industry with relentless innovation and unwavering commitment to underserved markets,” adds Solari.
For more information about Sigo Seguros and its inclusive auto insurance solutions, visit sigoseguros.com.
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About Sigo Seguros
Sigo Seguros is an insurtech company focused on providing auto insurance services for immigrant and working-class communities. Founded in 2019 and headquartered in Texas, the company is committed to making insurance more accessible and affordable to everyone, particularly the Latino and Spanish-speaking population. Sigo Seguros achieves this through its proprietary product launched in August 2021, an innovative mobile app and web portal, which offers transparent pricing and easy-to-use features that cater to the unique needs of its customers. To learn more, visit them at sigoseguros.com.
About Varco Capital
Varco Capital is an investment firm founded by Carlos and Rafael Varela, the founders of Pronto Insurance. Founded in 1997 and headquartered in Brownsville, Texas, Pronto is a full-service Managing General Agency (MGA), broker and claims administrator. Pronto's primary business is the placement of personal non-standard automobile insurance for consumers throughout Texas, California, and Florida, with a special focus on serving the rapidly growing Hispanic market. Pronto Insurance was sold to Arthur J. Gallagher in 2018.
About Listen Ventures
Founded in 2010, Listen is a venture capital firm investing in consumer-obsessed founders building brands at the tipping point of behavior shifts. Listen operates a concentrated early stage investment strategy leveraging its team of investors, consumer-insight experts and creative capitalists. Select portfolio brands include Calm, Factor, Kiwi Crate, Miss Grass, Black Buffalo, Own Up and Raise. Learn more at Listen.co.