Wagmo Raises $12.5M to Revolutionize Pet Insurance

The Expanding Pet Care Market and Wagmo's Series A Funding

Significant growth has been observed in the pet care industry in recent years. This is evidenced by events like Chewy’s initial public offering and the emergence of numerous veterinary-focused startups, attracting substantial investment from venture capitalists and consumers alike.

Wagmo Secures $12.5 Million in Series A Funding

Wagmo, a startup specializing in pet insurance and related benefits, has successfully completed a $12.5 million Series A financing round. Revolution Ventures spearheaded the investment, with additional participation from Female Founders Fund, Clocktower Technology Ventures, and Vestigo Ventures.

Several angel investors also contributed to this round, including Jeffrey Katzenberg, Jim Grube, Marilyn Hirsch, David Ronick, and Michael Akkerman.

Addressing a Gap in Pet Healthcare Coverage

Founded by Christie Horvath and Ali Foxworth, Wagmo was born from their combined experience in finance and insurance. They identified a notable deficiency in the existing pet insurance market.

While most pet insurance policies primarily cover major medical events – such as surgeries and fractures – the founders recognized that the cumulative cost of routine care can be substantial, particularly for new pet owners.

Wagmo’s Comprehensive Coverage Options

Wagmo provides standard pet insurance coverage for significant health issues. However, it distinguishes itself by also offering a dedicated wellness program.

This Wellness Program provides reimbursement for everyday pet care expenses, including vaccinations, grooming services, routine veterinary checkups, fecal examinations, and blood tests.

How the Wellness Program Works

Users subscribe to the Wellness Program for a monthly fee ranging from $20 to $59. They then submit photos of their receipts through the Wagmo app.

Reimbursement for eligible expenses is processed quickly, typically within 24 hours, via Venmo, PayPal, or direct deposit.

The Benefits of Proactive Pet Healthcare

The core concept behind Wagmo’s approach is based on two key principles. Firstly, maintaining a dog’s health through preventative care reduces the likelihood of developing serious medical conditions later in life.

Secondly, the initial expenses associated with pet ownership often involve these essential wellness services, like vaccinations and routine vet visits.

Flexible Plan Options for Pet Owners

Wagmo allows customers to enroll in the Wellness Program independently of an insurance plan. This flexibility enables users to access the services they need immediately, with the option to add insurance coverage at a later time.

Revenue Streams and Future Expansion

Wagmo currently generates revenue through both its wellness and insurance plans. The company is also actively exploring an enterprise-level business model.

This involves partnering with larger organizations to offer Wagmo’s benefits as part of their employee benefits packages.

Growth and Team Diversity

The Wagmo team, now comprising 14 individuals, has successfully onboarded thousands of users. The company has experienced a consistent 20 percent month-over-month user growth since the start of the pandemic.

Furthermore, Wagmo has processed over 30,000 wellness claims to date.

The team demonstrates a commitment to diversity, with 58 percent identifying as female. Additionally, Black, Asian, and Latinx individuals each represent 17 percent of the workforce.

Challenges and Future Priorities

“Our biggest challenge lies in determining how to effectively address the significant opportunities available, especially within the employer benefits sector,” stated Horvath.

“We are focused on identifying the optimal starting point, prioritizing initiatives, and strategically allocating our limited resources and time.”