Brazilian insurtech startup Justos has raised $35.8 million in Series-A funding to improve the auto insurance process in Brazil, according to media reports. The funding round was attended by new investors, namely, SoftBank’s Latin American Fund and GGV, along with other existing investors like Kaszek, BigBets, Nubank CEO David Velez and Kavak CEO Carlos Garcia Ottati.
Earlier this year, the insurtech announced that they have raised $2.8 million in seed funding from several unicorns Hippo Insurance, Creditas, and ClassPass. Justos is yet to officially launch its product but the company has already started to attract a large group of high-profile investors.
According to the CEO of the company, the product will launch very soon in the future and the company already has 12,000 leads on its waitlist. Till now, the Brazilian insurtech has launched a driving test and quoting app. Ahead of its official launch, Justos is collecting data from the driving test.
In order to improve the whole auto insurance process in Brazil, Justos is collecting user data through their mobile phones so that it can more accurately and precisely price the different types of risks. With this route, the company can offer plans that are up to 30 percent cheaper than traditional plans, and grant discounts each month.
Dhaval Chadha, CEO of Justos told the media, “We measure how safely people drive using the sensors on their cell phones. This allows us to offer cheaper insurance to users who drive well, thereby reducing biases that are inherent in the pricing models used by traditional insurance companies.”