Lemonade, a tech-driven insurance company known for bringing a revolution in the industry has raised $319 million funds in its US initial public offering (IPO). The company aims on digitizing the process of obtaining homeowners and renters insurance. Also, it used bots and machine learning technology to replace brokers.
Lemonade raised such a huge amount in a funding round led by the Japanese multi-industry entity SoftBank. Other renowned contenders in the funding round included Allianz SE and GV. Also, owing 27.3% stakes in the company, Lemonade is appreciably backed by SoftBank. On Thursday, the company listed its shares on the New York Stock Exchange under the label of ‘LMND.’
The IPO raised $319 million for the company and valued it at $1.6 billion. In the 2019 funding round, it was valued at $2.1 billion. This represents a 23% decline. Talking about the same Martin Thornton, head of Corporate Trading told that Lemonade had not turned a profit since its launch in 2015.
It had a net loss of $36.5 million in the three months ending March, compared with a $21.6 million net loss during the same period last year. Also, on the contrary, the company’s sales have now more than doubled in that period.
In February, Lemonade launched a new health insurance product line. The launched product line uses the same machine learning technology that Lemonade uses for its other products. Moreover, the company has started registratio
Headquartered in New York, Lemonade has its origins in Israel with around 123 full—time employees employed there.