Lassie Secures $75 Million Series C to Expand Pet Insurance Operations

Swedish pet insurance startup Lassie has successfully raised $75 million in a Series C funding round, attracting investment from notable firms such as Balderton, Felix Capital, Inventure, Passion Capital, and Stena Sessan. Launched in 2020, Lassie has expanded its operations beyond Sweden into France and Germany, with the latter now serving as its largest market. According to co-founder and CEO Hedda Båverud Olsson, this latest funding will enable the company to achieve profitability and continue its growth across Europe.

Båverud Olsson expressed confidence in the company’s financial position, stating, “It’s a very luxurious position, where you don’t have to make bad decisions because you’re out of cash.” This optimistic outlook contrasts sharply with challenges currently faced by many in the insurtech sector. Following a boom in 2021 and 2022, numerous companies have struggled, including Luko, which sold its operations to Allianz Direct as part of a restructuring, and Hedvig, which withdrew from the Danish and Norwegian markets.

Despite these industry setbacks, Lassie has managed to grow steadily. The company now insures approximately 250,000 pets across its markets and boasts over $100 million in annual recurring revenue. Båverud Olsson attributes this success to a cautious approach, noting, “Many have focused on growth at all costs. But when the recession hit, some of those insurers lost their insurance provider or had to double prices for customers.”

Lassie’s strategy has prioritized building a solid foundation, starting with a team that includes insurance experts. Båverud Olsson explained, “To our advantage, we launched with an insurance expert in our team, so we’ve always had it under control and never had to roll back.” While the company’s initial growth may have been slow, it has allowed them to establish a profitable insurance portfolio.

Incorporating innovative technology has also played a crucial role in Lassie’s success. The company introduced artificial intelligence features early in its development, allowing for instant payments on insurance claims. According to Båverud Olsson, in 60% of cases, customers receive payment within six minutes of uploading a receipt from a veterinary clinic.

Lassie’s engagement with customers extends beyond insurance claims. The company offers interactive features such as short courses on pet health, training, and nutrition, which have contributed to a highly active user base. Båverud Olsson noted that 25% of its monthly active users interact with the product daily, stating, “People find it so fun.”

While Lassie acknowledges the importance of unique selling points, Båverud Olsson emphasizes a broader goal: “We’ve always set a goal that we should be 10 times better than a competitor; it’s not enough to just have a nice app.” This focus on quality and customer satisfaction appears to be a guiding principle for the company as it navigates the evolving landscape of pet insurance in Europe.

With its recent funding and strategic growth plans, Lassie is poised to strengthen its position in the market, offering pet owners reliable insurance solutions while enhancing customer experience through innovative technology.