Just months after raising $28 million, Jerry announced today that it has raised $75 million in a Series C round that values the company at $450 million. Existing backer Goodwater Capital doubled down on its investment in Jerry, leading the “oversubscribed” round. Bow Capital, Kamera, Highland Capital Partners, and Park West Asset Management also participated in the financing, bringing Jerry’s total raised to $132 million since its 2017 inception. Goodwater Capital also led the startup’s Series B earlier this year. According to co-founder and CEO Art Agrawal, Jerry’s new valuation is about “4x” that of the company at its Series B round.
“What factored into the current valuation is our annual recurring revenue, growing customer base, and total addressable market,” he told TechCrunch, declining to be more specific about ARR other than to say it is growing “at a speedy rate.” He also said the company “continues to meet and exceed growth and revenue targets” with its first product, a service for comparing and buying car insurance. At the company’s last raise, Agrawal said Jerry saw its revenue surge by “10x” in 2020 compared to 2019.
Jerry, which says it has evolved its model to mobile-first car ownership “super app,” aims to save its customers time and money on car expenses. The Palo Alto-based startup launched its car insurance comparison service using artificial intelligence and machine learning in January 2019. It has quietly since amassed nearly 1 million customers across the United States as a licensed insurance broker.
“Today, as a consumer, you have to go to multiple different places to deal with different things,” Agrawal said at the time of the company’s last raise. “Jerry is out to change that.” The new funding round fuels the launch of the company’s “compare-and-buy” marketplaces in new verticals, including financing, repair, warranties, parking, maintenance, and “additional money-saving services.”
Although Jerry also offers a similar product for home insurance, its focus is on car ownership. Agrawal told TechCrunch that the company is on track to triple last year’s policy sales and that its policy sales volume makes Jerry the number one broker for a few of the top 10 insurance carriers. “The U.S. auto insurance industry is an at least $250 billion market,” he added. “The market opportunity for our first auto financing service is $260 billion. As we enter more car expense categories, our total addressable market continues to grow.”