SOSTENGO, Central American Insurtech, secures $3.8M seed funding for Latam markets and U.S. Hispanic entry. With 103% YoY premium growth, it pioneers accessible insurance, expanding regionally and targeting the U.S. Hispanic market.
Funding Round Will Fuel User Growth In Both Latin America And U.S. Hispanic Market
MIAMI, March 5, 2024 /PRNewswire-PRWeb/ -- SOSTENGO, the leading Central American Insurtech company with a 100% self-serve end-to-end solution based in San Salvador, has raised $3.8 million in seed funding. Additionally, the company has extended the round by an additional $1 million for its expansion into the U.S. market.
Founded in El Salvador in 2021, SOSTENGO introduced a user-friendly, self-serving, accessible, and agile auto insurance APP. The platform has enabled individuals, 70% of its current customer base, to secure their first safety and protection through their smartphones. SOSTENGO experienced a 103% year-over-year growth in premiums sold, reflecting the company's robust expansion and increasing impact in the insurance industry.
Despite the significant year-over-year growth in registered vehicles in Central America, less than 10% of vehicles are insured and protected. SOSTENGO aims to capture this uninsured segment by providing the first customizable, affordable, and user-centric insurance tailored to individual needs.
Through the SOSTENGO app, users can easily quote, customize, purchase insurance, report incidents, receive assistance from human agents in emergencies, and complete the payment process — all within minutes. SOSTENGO's mission goes beyond driver protection; it seeks to educate its users on viewing insurance as a long-term investment that ensures the physical protection of the driver, their assets, and third parties in the event of unforeseen events.
PeopleFund, a venture capital firm, participated in the round and established a joint venture operation in Guatemala through one of its subsidiaries. "Insurance plans and online marketing run through our DNA," said Julio Gonzalez Arrivillaga, co-founder of PeopleFund. "I am satisfied with the path and business decisions made by SOSTENGO, which convinced me to invest and close the round".
"We are excited to continue evolving the industry and position ourselves as pioneers in the digitalization of insurance in the region. This new funding round will not only allow us to continue growing in Central America but also introduce our tailored solution to U.S. Hispanics, jointly with key investors and industry experts by our side," said Estuardo Escobar, CEO of SOSTENGO.
SOSTENGO is a pioneer not only in Central America bringing innovation and accessibility to the region, but it has also identified an important underserved niche in a more developed insurance market — the Hispanic population in the United States. The U.S. Hispanic market, the fifth-largest global economic potential, is growing significantly yearly.
Media Contact
Gabriella Bragheri, Sostengo, 503 78503274, [email protected], https://www.sostengo.com/
SOURCE SOSTENGO
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