UK-based insurtech start-up Zego has secured $42m in Series B funding round led by Target Global, to support its expansion strategy into Europe.

Additional investors, who participated in the funding round, include Balderton Capital and Transferwise co-founder Taavet Hinrikus and existing investors Balderton Capital and Tom Stafford of DST Global.

Hinrikus and Target Global’s partner Ben Kaminski will join Zego’s board.  So far, the company has raised $51m.

The London-based insurtech firm plans to spend the funds to enhance its tech platform and launch operations in several more European markets by the end of 2019.

To support its expanding business requirements, the company also plans to increase its headcount from 75 to around 125-150. It will enable the company to tap the opportunities presented by the growing mobility market.

Zego CEO and co-founder Sten Saar said: “When we built Zego from scratch three years ago, our mission was to transform the insurance sector by creating products which truly reflected the rapidly changing world of transport.

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“We’ve already come a long way since then, and the latest funding round paves the way for an exciting new chapter as we expand through Europe.

“The world is becoming more urbanised and because of this, we are moving from traditional ownership of vehicles to shared usership. This means that the rigid model of insurance that has existed for hundreds of years is no longer fit for purpose. We are extremely proud to be at the forefront of change.”

Established in 2016, Zego provides flexible insurance for the ‘gig economy’. Additionally, it offers a range of insurance plans to car rental, ride hailing  and scooter sharing providers.