Zebra Raises $150 Million in Funding as Startup Begins Transition to Major Tech Company

By Thomas Price Monday, April 12, 2021

With insurance companies and policies becoming increasingly complex, the ability to parse through all of them and find the best coverage per consumer has gotten even more difficult. This becomes especially true considering the number of new businesses and companies cropping up offering new takes on traditional insurance as well. Zebra is a tech startup that has created a service for users that more easily compares insurance policies. The insurance savings tech business has become incredibly popular, with the company building a major user base. As a result, the startup recently raised major Series D funding.

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What Zebra Offers and Ongoing Success

Zebra is a tech startup that has built and launched an insurance policy comparison website that automatically provides a seamless interface and easy-to-understand information for users to take into consideration when choosing an insurance company. While initially just offering the service for auto insurance company comparison, the startup has since expanded its business to include homeowners insurance as well. The startup has recently seen its revenue increase and business explode in popularity as awareness campaigns and word-of-mouth reviews pushed more users to the company’s website.

In 2019, Zebra generated $37 million, which, while impressive, pales in comparison to the $79 million the business brought in last year. The current annual run rate for the startup sits at an impressive $150 million. As a result, the company continues to see its monetization unit economics rise by 100% every year.

On a more concrete level, Zebra is also expanding its actual business. In fact, during the COVID-19 pandemic, the tech business expanded its workforce significantly. After starting the year at just around 200 employees, Zebra is now employing 325 people — a 60% increase from just a year ago. The rapid growth of the startup has in turn led to serious enthusiasm from a myriad of investors.

Funding for the Tech Company and Future Plans

In Zebra’s Series D funding round, the company raised $150 million. The funding round was led by Weatherford Capital and Accel, with participation from Silverton Partners, Ballast Point Ventures, Daher Capital, Floodgate Fund, and KDT, among others. The latest funding raises the insurance savings tech company valuation to over $1 billion. The valuation makes Zebra a verified unicorn within the industry.

The money will be used to create a significant national advertising campaign, add more tools to the company website, and integrate machine learning technology into its services. Given the $6.1 trillion value of the global insurance market, Zebra has the possibility of growing even more in the future. The new ad campaign will be able to continue to grow Zebra's impressive user base and generate stronger monetization capabilities.

When commenting on the newest funding round, CEO of Zebra, Keith Melnick, said, “This investment is going to be used to grow our team and build our brand. We are accelerating our efforts to make The Zebra a household name and help educate, empower and advise consumers to find the best policies for their unique needs, no matter where they are in their lives.”

About the Author

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Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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