Contxto – From top secret to public knowledge, Brazilian mobile insurance provider Pitzi recently revealed that it raised R$60 million (close to US$14.3 million) in its latest investment round. Backers like QED Investors and WTI led the effort alongside past investors such as Thrive Capital plus Valiant Partners.
As it stands, Pitzi is a hair’s breadth away from reaching a valuation of US$100 million.
In collaboration with QED Investors, Pitzi now joins Nubank, Creditas, Konfio and Quinto Andar in the fund’s portfolio. Moreover, QED’s general partner Bill Cilluffo will join Pitzi’s board of directors.
Since its founding in 2012, this Brazilian insurtech has raised over US$16 million throughout three rounds. It has managed this by banking on investors like Thrive, Kaszek Ventures, Flybridge, as well as DCM.
Mobile insurance provider on the move
With close to 1 million customers in Brazil, Pitzi has benefited from its strategy of reselling low-cost mobile insurance offerings.
Now, faced with a massive pile of Brazilian reals, the startup is allocating funds to extend its reach.
In terms of its target audience, this startup is also thinking big. It wants to support over 200 million phone owners in Brazil alone—that’s 95 percent of the country’s population. And yet, while this number is massive, the market is there for the taking: most phone owners are uninsured.
Daniel Hatkoff, founder and CEO of Pitzi, currently bets on filling that gaping cellphone insurance-shaped hole at the heart of Brazil where only 4 percent of phones have insurance.
He believes cellphone’s multifaceted uses yield a lot of business potential, especially for Brazil’s developing middle class.
“The smartphone will be profoundly transformational in Brazil, allowing the emerging middle class to finally emerge and do things it never imagined possible,” said Mr. Hatkoff.
“As market leaders, we at Pitzi are obsessed with unlocking the Brazilian consumer’s ability to use their phones in ever more powerful ways. Cellphone protection is just the beginning.” He concluded somewhat ominously, as sources report how Pitzi plans to diversify beyond its already covered products.
Regarding its business model, the company focuses on smartphone repairs, providing coverage for a variety of damages. Whether it be for drops, spills or internal damage, users can ensure their phones from US$5 a month. However, this is half the country’s daily minimum wage. Prices do depend on the phone model with quotes available over the website.
Clearly, as the startup looks into increasing its customer base, there is still much more to come.