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September 9, 2022

Insurer Carrot on track to gain unicorn status with fresh infusion

Carrot General Insurance, a South Korea-based digital insurer, has raised $145m (KRW175bn) in its third funding round led by private equity firm Affirma Capital.      

The fundraising also saw the participation of investors including Hanwha Group, Stic Investments and Altos Ventures.

Carrot plans to secure another $105m (KRW125bn) through an extended round during the fourth quarter of this year.

The company, in a statement, said: “Investors writing a big check reflect their strong confidence in Carrot’s growth prospects considering the current financial landscape is extremely uncertain and unstable.”

Carrot expects its valuation to touch $850m (KRW1tn) following completion of the extended funding round.

Through this, the company seeks to become the first digital insurer in South Korea to join the unicorn club.

The latest capital is expected to help the firm bolster its presence in the existing market and improve its capabilities in the fields of technology and innovation.

This funding will also spur the company’s expansion in in-house pipelines.

Carrot CEO Richard Moon said: “I am delighted to welcome our new investors and thank our existing shareholders for their continued support and confidence in Carrot.

“We have made very significant milestone while keeping the J-curve growth at even a faster pace, which I believe is driven by surging demand for simple and innovative insurance products to meet evolving customer needs in today’s world.

“Our big focus will be on agile and open innovation, which will speed up product development and technological innovation to fast-forward the future of insurance.”

The company seeks to reach break-even by 2024, with plans to go public by 2025.

In its last round of financing, Carrot garnered $90m via rights offering.

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