Columbus-based Matic Insurance Services Inc. has doubled its valuation in a $20 million combination equity and debt fundraising with new and existing investors including Nationwide.
Founded in 2014, the profitable digital insurance agency on average doubled revenue each of the last five years, according to a news release, and profit has increased by more than 60% over last year. Dollar values of revenue and valuation were not released.
The funding extends Matic's 2020 Series B round, when it raised $24.5 million, and doubles the valuation from that deal. The new raise is made up of $17 million in venture capital and a $3 million credit facility.
New York City-based IA Capital, which led the funding three years ago, co-led this extension of the round with Cultivation Capital, a St. Louis firm focusing on early-stage investments, the release said.
“Despite the macroeconomic environment and challenging insurance market, Matic continues to profitably grow,” co-founder and CEO Ben Madick said in the release. “The commitment from new and existing investors demonstrates Matic’s sustainable business model that thrives in all markets through partner-led growth."
New investors include Intuit Ventures, TruStage Ventures, Assurity Ventures, Venice Investments, and Bayshore Capital. Besides IA and Cultivation, repeat investors participating in the new round include Fenway Summer, MTech Capital, Allstate Strategic Ventures and Nationwide Ventures, the VC investing arm of Columbus-based Nationwide Mutual Insurance Co.
Based in the Brewery District, Matic first established a Columbus office in 2016. It won a state incentive five years ago, pledging to grow to 60 jobs, and later moved the headquarters here from Los Angeles. A separate downtown Columbus incentive expired because the company outgrew a downtown office too quickly, and did not sign a long-term lease in case it had to move again.
Matic also has a western hub in Phoenix.
The company had about 140 employees as of January, after cutting 5% of staff. The company cited a need to focus on profitability amid volatility in capital markets for the reduction.
Matic's embedded platform works with more than 100 lenders, loan servicers and banks that together process about 20% of U.S. home mortgages, according to the release. Recent winning bids for new contracts will mean launches later this year with a top 10 bank and two of the 25 largest mortgage companies.
Insurance carriers on the quote-generating platform for home and auto coverage include Columbus-based insurers Nationwide, Branch and Grange. Matic's revenue is based on sales commissions from carriers.
The new funding will help add more embedded partners, product enhancements and expansion beyond property and casualty insurance to add life insurance.
"Consumers want a simple, easy, and transparent experience when searching for home insurance,” Adam Coccari, managing director at Intuit Ventures, said in the release. “Matic’s insurance marketplace helps customers find the right coverage at the best price. Its ability to provide a seamless, embedded experience has made it a top insurance partner for mortgage companies and banks."
Madick remains in San Diego, according to his LinkedIn profile. The top local executive is Jeff Snyder, promoted last month to president over insurance from vice president of revenue, according to his profile.
