Jerry Raises $75M to Build Car Ownership Super App

Jerry Secures $75 Million in Series C Funding

Following a $28 million raise just months prior, Jerry has announced the successful completion of a $75 million Series C funding round.

Valuation and Investors

This new investment brings the company’s valuation to $450 million. Goodwater Capital spearheaded the “oversubscribed” round, significantly increasing their prior investment in Jerry.

Additional participation came from Bow Capital, Kamerra, Highland Capital Partners, and Park West Asset Management. To date, Jerry has raised a total of $132 million since its founding in 2017.

According to co-founder and CEO Art Agrawal, the current valuation represents approximately a “4x” increase compared to the Series B round.

Growth and Revenue

“The factors driving this valuation include our annual recurring revenue, expanding customer base, and the overall size of the addressable market,” Agrawal explained to TechCrunch.

He further stated that the company is consistently achieving and surpassing its growth and revenue objectives with its initial offering – a service designed to compare and facilitate the purchase of car insurance.

Previously, Agrawal reported a “10x” revenue increase in 2020 compared to the previous year.

Evolving into a "Super App" for Car Ownership

Jerry is transitioning its business model towards a mobile-centric “super app” focused on car ownership. The goal is to provide customers with both time and cost savings related to vehicle expenses.

The Palo Alto-based startup initially launched its AI and machine learning-powered car insurance comparison service in January 2019. Since then, it has quietly grown to serve nearly 1 million customers across the United States as a licensed insurance broker.

“Currently, consumers must navigate numerous platforms to manage various aspects of car ownership,” Agrawal noted in a previous statement. “Jerry aims to consolidate these services into a single, streamlined experience.”

Expansion into New Verticals

The newly acquired funding will support the launch of “compare-and-buy” marketplaces in additional sectors. These include financing, repair, warranties, parking, maintenance, and other services designed to save customers money.

While Jerry also provides a similar service for home insurance, its primary focus remains on the automotive market.

Investor Perspectives

Rafi Syed, a Jerry board member and general partner at Bow Capital, emphasized the importance of accessible and affordable transportation for economic empowerment.

“Jerry is empowering car owners to maximize their financial resources,” Syed stated. “Beyond being a strong technology investment leveraging data in financial services, it also promotes financial inclusion.”

Chi-Hua Chien, a partner at Goodwater Capital, highlighted Jerry’s recurring revenue model as a key differentiator from lead generation-focused car insurance comparison websites.

A Unique Business Model

Agrawal concurred, stating that the company’s robust annual recurring revenue has attracted investors. He also pointed to Jerry’s position at the intersection of the auto, e-commerce, fintech, and insurtech industries.

“We identified these investment opportunities as catalysts for accelerated growth, leading to an earlier-than-anticipated funding round,” Agrawal shared with TechCrunch. “We are now positioned to rapidly introduce new features that save customers time and money on auto-related expenses.”

Jerry distinguishes itself from other automotive marketplaces by offering comprehensive support for various aspects of car ownership – encompassing repair, maintenance, insurance, and warranties – rather than focusing on a single service.

Furthermore, the company streamlines the insurance process by providing customized quotes from over 45 carriers “in 45 seconds” and facilitating policy sign-up and cancellation directly through the platform, eliminating the need for consumers to visit individual carrier websites.

Jerry generates recurring revenue through commission earned on premiums when customers purchase policies through its platform from carriers like Progressive.