Extracover Holdings secures £19.2m for Zego insurtech operations

Flexible motor insurance provider Zego has received a capital injection of £19.2m through its parent company, Extracover Holdings Limited. The London-based business, incorporated in 2018, addresses the insurance gap for the gig economy by offering policies that scale with a driver activity. Its subsidiaries underwrite risks for individual vehicles including scooters, cars, and vans used for commercial delivery and personal use.

Financial statements for the year ending 31 December 2024 show the group generated £137.9m in revenue. While the company reported a £4.1m loss for that period, it continues to operate with a staff of 264 people. The company total assets and specific valuation for this round were not disclosed in the filing, though the estimated round size is based on recent share allotments.

The current £19.2m round adds to a complex funding history for the insurtech firm. This latest figure is higher than the £17.3m raised in August 2022 but lower than the £40.8m secured in December 2021. Other historical capital raises include £4.4m in December 2020 and several smaller tranches, such as £45.2k in April 2021, £25.1k in February 2021, and £12k in February 2023. The allotment for the current round occurred in April with formal documentation filed in May.

Zego core offering focuses on the specific needs of couriers and delivery drivers who often find traditional annual insurance policies incompatible with the fluctuating nature of gig work. By providing pay-as-you-go and monthly options, the company allows workers to align their insurance costs with their actual working hours. The platform serves both individual drivers and fleet businesses, providing a digital-first approach to commercial motor insurance.

The company remains headquartered in London and manages its underwriting and software development through various subsidiaries under the Extracover Holdings umbrella. This latest funding follows a period of high-volume revenue growth as the business continues to serve the UK courier and delivery market.