Sigo Seguros — Securing Insurance for the Latinx Community
Welcome Sigo Seguros to the Chingona Ventures family! Chingona Ventures is proud to have co-led Sigo Seguros’ Seed round, alongside Listen Ventures. Sigo Seguros is an insurtech startup that aims to close the insurance gap in the Latinx and immigrant community. Our team has seen Sigo Seguros grow their brand and listen closely to the Latinx community they are serving; we are looking forward to partnering with them for their next stage of growth. Congratulations to Nestor Hugo Solari, Julio Erdos, Ivan Arambula, and the entire Sigo Seguros team for closing their $5.4MM Seed round!
Sigo Seguros removes biased rate factors (credit score, level of education, or type of employment) and predatory fees from the underwriting process for their customers — thus, creating an inclusive auto insurance provider that serves their Spanish-speaking customers fair and transparent coverage. It is noted that Sigo Seguros is the only insurance company in the US that can digitally onboard and support their customers fully in Spanish. This is incredibly important, as Spanish-speaking customers/the Latinx community are often overlooked in the insurance market.
“There are many diverse visionaries who are being overlooked. We’re elated to have connected with Sigo Seguros in a partnership grounded in forwarding change for the Hispanic community. The Hispanic market is one of the fastest-growing and most overlooked. Hispanics in the U.S. have their unique way of making decisions and consuming media, and Sigo Seguros is building a company that understands this. The Sigo Seguros team is meeting this population where they are and making it easy for them to get insurance.” — Samara Hernandez, Founding partner at Chingona Ventures (Latinx InsurTech, Sigo Seguros Raises $5.4 Million in Seed Funding).
Our team is excited to have invested in Sigo Seguros, especially given our investment thesis that focuses on industries that are massively changing and founders whose backgrounds uniquely position them to create businesses in growth markets that are often overlooked. The Sigos Seguros team is not only tackling a unique and underserved market, but they also have a history of success and validation that their customers need something like this.
Sol Trujillo said it best; “The U.S. Latino market is growing GDP at 8.6%, faster than China, faster than India, and nobody talks about it.” While overlooked as a market, 94% of Latinx consumers use multiple devices to access the internet, in comparison to 85% of non-Latinx white consumers. More Latinx millennials are also using mobile payments (59%, up from 44%). We are also seeing an influx of Latinx homebuyers and car owners; 56% of homebuyers will be Hispanic in 2030 and there is predicted to be over 1M new Hispanic drivers annually through 2050. Sigo Seguros has noticed the demand for insurance from this market and has been creative in the ways they serve their customers. For instance, insurers traditionally penalize foreign-born customers for not having access to a U.S. or state driver’s license. Sigo Seguros accepts all forms of ID, including foreign and out-of-state licenses, and also removes charges like reinstatement fees, cancellation fees, payment fees and endorsement fees. It is to no surprise that Sigo Seguros’ customers are happy with their service — the company has maintained a customer retention rate more than 80% since their inception in 2019.
We are thrilled to see Sigo Seguros raise their seed round and can’t wait to see their continued growth. Congratulations again to the entire team for all their hard work and dedication!
