- The Zebra expects to reach a $100 million annual run rate by the end of 2020, thanks to expanding its online marketplace's coverage.
- And the insurtech should now grow its partner network to fend off competitors.
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The US insurtech's net revenue reached $8 million in September, up from $6 million in May, placing it close to a $100 million annual run rate, according to TechCrunch.
The Zebra's CEO added that it's generating a positive net income. A run rate indicates a company's financial performance using current financial information as a predictor of future performance, assuming that current conditions continue. The Zebra operates an insurance marketplace for car, home, renters, and life coverage.
The Zebra has had a successful year, securing additional private funding to expand its coverage and capitalizing on the shift to online sales. The insurtech raised $38.5 million in Series C funding in February. At the time, it reached a $60 million annual run rate and had partnered with nine of the 10 top auto insurance carriers in the US.
Since then, it has branched out into renters and life insurance via partnerships with insurtechs Lemonade and Ethos—attracting additional traffic and revenues to its marketplace. Moreover, in-person interactions between insurance agents and customers declined this year due to infection risks, forcing the traditional insurance distribution model to move online, per McKinsey. This made online marketplaces, such as The Zebra, more convenient for both insurers and consumers, further fueling its growth.
The insurance marketplace industry is heating up, leading to an increasingly crowded space where only the broadest offerings will stand out. The Zebra is one of many insurance marketplaces that closed funding rounds in 2020, including Insurify, Gabi, and Policygenius, which secured $100 million. Policygenius offers auto and home coverage like The Zebra, and recently launched a life insurance price index, which collects data from leading life insurers to provide average monthly rates.
To compete and secure its growing profitability, The Zebra would do well to continue building out its own life and renters insurer partner network beyond the two insurtechs it currently offers. This way, it can provide users with the best deals across the industry, increasing customer satisfaction and making it a comparable offering to Policygenius' platform.
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