(Reuters) - Tech-driven insurance startup Lemonade Inc filed for its U.S. initial public offering (IPO) on Monday, looking to take advantage of a recent recovery in the market after the coronavirus crisis slammed the brakes on new listings.
Lemonade, which started in New York in late 2016, is part of a growing number of young companies looking to shake up the insurance sector through better use of technology.
It offers insurance in 28 U.S. states and markets itself as a company that gives any money left after paying claims to charities chosen by its customers.
The company says it has digitized the entire insurance process, replacing brokers and paperwork with algorithms and providing policies in as little as 90 seconds and payment of claims in three minutes.
Last year, it raised $300 million in a funding round led by Japan’s SoftBank Group Corp (9984.T), which also included insurer Allianz SE (ALVG.DE), Alphabet Inc’s (GOOGL.O) venture capital arm GV, General Catalyst, OurCrowd and Thrive Capital.
Lemonade’s IPO comes just weeks after insurance policy comparison website SelectQuote Inc SLQT.N raised $360 million in its offering and had a strong debut, with its shares jumping over 40% in their market debut.
The company intends to list its shares on the New York Stock Exchange under the symbol “LMND”, it said in a filing with the U.S. Securities and Exchange Commission.
Goldman Sachs, Morgan Stanley and Barclays are among the underwriters on the IPO.
Reporting by C Nivedita; Editing by Maju Samuel and Anil D'Silva