Insurance tech company Pie Insurance has secured $127m investment in new financing and capital commitments.

Gallatin Point Capital joined the capital raise which also had participation from the company’s existing investors including Greycroft, SVB Capital, Aspect Ventures, Elefund, and Sirius International Insurance Group.

The company intends to use $27m of the fresh capital to expand its offering to small business owners and to support its continued growth.

An additional $100m equity capital commitment will fund Pie’s strategic initiative to form and purchase licensed insurance companies. As part of it, Pie will form a new affiliated company, Pie Carrier Holdings, with Gallatin Point Capital as the lead investor.

Pie Carrier Holdings, which will also have direct investment from Sirius Group, will own the licensed insurance companies that Pie will use to issue a portion of its insurance policies.

Gallatin Point Capital co-founder and managing partner Matt Boteinsaid: “We’re impressed with the results Pie has achieved in such a short time period.

“We welcomed the chance to contribute to their expansion strategy in a meaningful way.”

Pie Insurance co-founder and CEO John Swigart said: “We’re incredibly excited to partner with Matt and his team on this innovative approach toward solving one of the biggest challenges facing a growing insurtech company—building a capital structure that supports both our rapid growth and balance sheet needs.

“This financing enables Pie to continue our expansion, even during these uncertain times, while also forming the foundation for our future.”