DealerPolicy Announces $110 million Series C Funding Led by Goldman Sachs Asset Management

Rhea-AI Summary

DealerPolicy announced a $110 million Series C investment led by Goldman Sachs Asset Management, with support from existing investors. This funding aims to enhance DealerPolicy's finance and insurance offerings for automotive dealers and consumers, further integrating these services into the car-buying experience. The company plans to triple its product and engineering teams within the next year and expand strategic partnerships. On average, DealerPolicy saves consumers $64 per month on insurance, while partnering dealerships see a 44% increase in F&I gross margins.

Positive

• Secured $110 million in Series C funding from Goldman Sachs to accelerate growth.
• Plans to triple product and engineering teams within 12 months.
• Average consumer savings of $64 per month on insurance.
• Dealerships in the network report 44% higher F&I gross margins.

Negative

• None.

BURLINGTON, Vt., Aug. 26, 2021 /PRNewswire/ -- DealerPolicy, the leading insurance marketplace for automotive retail, today announced its $110 million Series C investment led by the Growth Equity business within Goldman Sachs Asset Management (Goldman Sachs) with participation from existing investors including 3L Capital and Hudson Structured Capital Management Ltd. (doing its re/insurance business as HSCM Bermuda). The new investment will be used to accelerate the growth of the company's next-generation finance and insurance (F&I) offerings for both dealers and car buyers, enabling automotive insurance to be seamlessly integrated online and at the point-of-sale. Goldman Sachs' Paul Pate will join the company's board of directors.

"DealerPolicy has successfully pioneered the assimilation of personal insurance into the automotive retail process, in a unified and compliant manner," said Paul Pate, a Vice President in the Growth Equity business within Goldman Sachs Asset Management. "We're thrilled to support the DealerPolicy team as they continue to transform the purchase of cars and insurance."

DealerPolicy will expand its operations to further develop and embed modern day insurance throughout the entire car shopping and ownership experience. To expedite the development and roll-out of its insurance distribution and fulfillment solutions with its major insurance carrier partners, the company intends to triple its product and engineering teams over the next 12 months by hiring new talent. Additionally, the company will increase investments in strategic partnerships.

"We started the company with the vision of providing a more convenient, transparent, and connected car-buying experience," said Travis Fitzgerald, Co-Founder and CEO of DealerPolicy. "The funding comes at a time when we're seeing mainstream adoption of automotive insurance into dealer sales and F&I processes driven by consumer desire for new dealership practices. This investment will allow us to advance our next-generation F&I offering, which provides consumers with competitive coverage options and tangible savings, as well as greatly increases dealer profitability."

On average, DealerPolicy Insurance saves consumers who report savings $64 per month on automotive insurance. DealerPolicy Insurance, the brand's award-winning agency, and its network of over 1,000 dealers and more than 40 leading insurance carriers, have written over $200 million in total premiums for car-buyers nationwide since establishing the company in 2016. Automotive dealerships in their network report on average 44 percent higher gross margins in their F&I departments because of increased customer budgets from their insurance savings.

For more information about DealerPolicy please visit, www.dealerpolicy.com. 

About DealerPolicy
DealerPolicy is the most trusted and complete digital insurance marketplace for automotive retailers and their valued customers. The company's innovative mobile technology enables car-buyers to view multiple insurance quotes and immediately purchase online and/or connect with licensed insurance agents to complete the process. With an exclusive combination of partnerships among premier automotive retailers and data providers, an industry-best insurance carrier network, and access to DealerPolicy Insurance licensed agents, DealerPolicy is recognized for its place at the forefront of Insurtech. DealerPolicy Insurance is a licensed insurance agency, with licenses to operate in the lower 48 states. For more information, visit  www.dealerpolicy.com. 

About Goldman Sachs Asset Management Growth Equity
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world's leading institutions, financial advisors, and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 2021. Driven by a passion for our clients' performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Since 2003 the Growth Equity business within Goldman Sachs Asset Management comprising more than 75 individuals has invested over $13 billion in companies led by visionary founders and CEOs. We focus exclusively on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare. Follow us on LinkedIn.

About Hudson Structured Capital Management Ltd. (doing its re/insurance business as HSCM Bermuda)
Hudson Structured Capital Management Ltd. is an asset manager focused on alternative investments seeking mezzanine level returns. Our focus is on the Re/Insurance and Transportation sectors. HSCM launched in 2016 and as of July 1, 2021, has more than $3.3 billion in assets under management and committed capital. HSCM focuses on core economic sectors that are likely to outgrow global GDP, offer low correlations with broader markets, and are experiencing a shift from balance sheet and to market financing. For more information, please visit www.hscm.com.

About 3L
3L provides capital, perspective and a global network of entrepreneurs and industry leaders to exceptional, early-stage growth companies. The firm invests in both consumer and enterprise businesses characterized by strong founders and executives, demonstrable product-market fit and scalable unit economics. Representative 3L companies include goPuff, Ro, Daily Harvest, Flaschenpost, ChowNow, and Relativity Space, among others. The firm was founded in 2017 and has offices in Los Angeles and New York City. For more information, visit www.3Lcap.com

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SOURCE DealerPolicy

FAQ

What was the amount of Series C funding announced by DealerPolicy?

DealerPolicy announced $110 million in Series C funding.

Who led the Series C funding round for DealerPolicy?

Goldman Sachs Asset Management led the Series C funding round for DealerPolicy.

What are the future plans of DealerPolicy following the funding?

DealerPolicy plans to triple its product and engineering teams and expand strategic partnerships.

How much do consumers save on average through DealerPolicy Insurance?

Consumers save an average of $64 per month on automotive insurance.

How much higher are the gross margins reported by dealerships in DealerPolicy's network?

Dealerships in DealerPolicy's network report 44% higher gross margins in their F&I departments.