Auto insurance company Crabi has secured $13.6m (260.32m pesos) in a funding round led by venture capital firms Kaszek and IGNIA. 

The round also saw participation from 30N Ventures, Redwood Ventures, Carao Ventures, Azuro Capital, Newtopia VC and additional investors. 

The company intends to use the capital to expand its network of distribution partners and further develop its AI-driven operations and underwriting solutions. 

Crabi CEO and co-founder Daniel Bernardez said: “At Crabi, we have proven that insurance can be scaled profitably when you put automation, AI and customer experience at the heart of your operation.  

“This new capital allows us to double down on both fronts, expanding access to affordable coverage while building a smarter, more inclusive insurance system for Mexico.”  

Crabi is the first licensed auto insurer in Mexico in 25 years.  

It utilises proprietary underwriting models and has integrated its services into the workflows of brokers, dealerships and lenders to streamline the insurance process for drivers in Mexico. 

Crabi said its approach focuses on offering “real-time” and “mobile-first” insurance experiences including instant policy issuance and automated claims support. 

Over the past three years, Crabi has doubled its year-over-year growth, improving its loss ratio and increasing its run rate by more than 20 times.  

It has established partnerships with car dealerships, vehicle financing platforms, leasing companies and brokers.  

Through these partnerships, Crabi leverages customer data for improved underwriting, which benefits both partners and customers by reducing risk and enhancing operational speed.