With latest financing round, Jerry gains $450M valuation
In less than a year, car-ownership app Jerry forged an investment path to value the company at $450 million.
The latest stop on the journey happened on Tuesday when Jerry announced the completion of a $75 million Series C funding round led by Goodwater Capital.
The company highlighted the latest financing was completed just seven months after Jerry’s $28 million Series B round, bringing total funding to $132 million.
Jerry explained that it looks to save customers time and money on car expenses. The company first launched its artificial-intelligence- and machine-learning-optimized car insurance compare-and-buy service in 2019 and today serves more than 1 million customers as a licensed insurance broker in all 50 states.
Jerry said in a news release that this new funding round fuels the launch of the app’s marketplaces in vehicle financing, repair, warranties, parking, maintenance and additional money-saving services.
“We’re helping our customers find savings on car expenses because we believe driving can be kept affordable and accessible,” Jerry co-founder and chief executive officer Art Agrawal said in the news release.
“This $75 million investment accelerates the development and refinement of additional automotive compare-and-buy marketplaces,” Agrawal continued.
Jerry said it can save customers an average of $800 per year on auto insurance policies that are comparable to their existing policy. As the company develops new marketplaces for vehicle expenses and services, the company said the opportunity to further reduce the total cost of vehicle ownership for individuals and families increases.
“Access to reliable and affordable transportation is critical to economic empowerment,” said Rafi Syed, Jerry board member and general partner at Bow Capital, a firm that invests in technology that advances society and betters our world.
“Jerry is helping car owners make the most of every dollar they earn,” Syed continued. “While we see Jerry as an excellent technology investment showcasing the power of data in financial services, it’s also a high performing investment in terms of the financial inclusion it supports.”
Chi-Hua Chien is a partner at Goodwater Capital and described the path Jerry has taken so far.
“Unlike lead-generation-based car insurance comparison sites, Jerry’s recurring revenue model positions the company for predictable revenue and scalable growth that’s not based on an ever-increasing marketing spend,” Chien said. “The company’s super app approach to saving customers time and money on all car expenses also extends the potential customer base across auto-related categories.
“Our re-investment in Jerry reflects our confidence in the company’s business model, growth rate, addressable market, and AI- and ML-based technology that continues to increase gross margins,” Chien continued.
Highland Capital Partners, a venture growth investment firm, brings to Jerry expertise in building successful direct-to-consumer, tech-enabled businesses. Park West Asset Management invests in public and private companies, primarily in technology, consumer and healthcare.
Jerry is headquartered in Palo Alto, Calif., operates offices in Toronto and Lockport, N.Y., and employs remote staff.
“Our oversubscribed Series C round is indicative of consumer demand for frictionless auto services marketplaces,” Agrawal said. “As we reviewed our investor options, we chose to deepen our relationship with Goodwater Capital, Bow Capital and Kamerra, and to add two new investors, Highland Capital Partners and Park West Asset Management.”