Crabi, a Mexican insurtech startup, announced that it received $4 million in seed investment led by Kaszek Ventures.
Created by former executives of Mercado Libre, Kaszek invests in Latin American companies with strong tech support that are situated in industries with growth potential. Among its most successful investments are Mexican unicorns Kavak and Bitso, and Brazil’s Nubank and Gympass.
Crabi came out of Guadalajara as a technology solution for the car insurance industry. Its founders Cristina Carvallo and Javier Orozco created an app that enables users to quote, compare and insure their cars. Deductibles and coverage costs are also available.
According to information from the company, Crabi lets users access a 15 percent savings on insurance. This is equivalent to the commission charged by an insurance agent to manage a contract.
Insurtech: opportunity knocks for users and insurers
The Mexican market is well-positioned for a company like Crabi to expand. According to 2020 data from the Commission for the Protection of Financial Services Users (Condusef), only three out of every 10 vehicles in Mexico have insurance. Mexico ranks second in deaths per year due to this cause in Latam. Additionally, there are approximately 238 car thefts per day.
According to the 2018 National Survey of Financial Inclusion, the main factor for not insuring a vehicle is the cost of the policy. Crabi offers a digital alternative that streamlines the car insurance comparing and purchasing process.
In 2019, Crabi received a $1.3 million seed investment with participation from Redwood Ventures and a family office. With Kaszek’s most recent capital injection, Crabi will integrate the entire vehicle insurance process: from quoting to policy-granting. For the time being, this last step is handled by a third party.
Crabi currently has 13,000 users and YoY growth of 110 percent.