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Sunday, January 29, 2023

This Startup By Indian Entrepreneur Gets Funding From 7 Unicorn CEOs! What’s The Secret Idea?

Justos is a Brazilian startup co-founded in Oct 2020 by Dhaval Chadha, Jorge Soto Moreno, and Antonio Molins.

The startup focuses on collecting drivers’ data to determine the rate of their auto insurance.

Those with safe driving habits would be rewarded with fairer prices.

About Justos
The app will collect user data on their phones using sensors to measure their driving behaviors.

With this data, different types of risk can be assessed according to which the rates of auto insurance one will receive can be determined.

Customers can buy insurance through the app itself which is available on phones, on the web and Whatsapp.

Justos is presently centered in Brazil with expansion plans including within Latin America, Iberia (comprising Spain and Portugal), and Asia.

The Indian Connection
Dhaval Chadha is one of Justos’ co-founders who is a PIO (Person of Indian Origin)

He is a Harvard graduate who has previously founded ClassPass, an app allowing users to book classes in the fitness area such as yoga, strength training, martial arts, pilates, and boxing.

About Justos, he said that he and his friends, Jorge Soto Moreno and Antonio Molins, were contemplating building a venture in Latin America.

They eventually decided on creating an insurance company intending to modernize it, starting with auto insurance.

Auto insurance was the favored choice since in Brazil over 70% of cars are uninsured due to various reasons.

The Market
The process of acquiring insurance in Brazil is quite slow.

One receives initial coverage in 72 hours and the final insurance policy comes only after 2 weeks.

The pace is also slow when it comes to the resolution of claims regarding car damages and loss due to accidents.

The pricing of these policies is also an issue as they are often murky and not transparent.

Hence, Justos has immense potential to revamp the insurance sector in Brazil given the size of the market and the issues involved which they can resolve using modern technology such as artificial intelligence, machine learning and computerized vision.

The aforementioned tech will enable claims to be processed at an accelerated pace.

Ultimately the app seeks to put customers first and get rid of hidden fees and conditions along with complicated jargon which confuses most.

How Customers Benefit
The drivers’ driving patterns of the previous month are measured and accordingly, they are granted discounts and plans that are up to 30% cheaper than the conventional ones.

The country also benefits as a whole for the long term since lower insurance rates based on good driving can incentivize safe driving habits and keep roads safe for everyone.

The Big Names Involved
In a seed round fronted by Kaszek, a major Latin American VC firm, and Big Bets, Justos raised about $2.8 million.

They were also backed by the CEOs of 7 unicorns.

They comprise-

Assaf Wand, CEO, and co-founder of Hippo Insurance
David Vélez, founder and CEO of Nubank
Carlos Garcia, founder, and CEO of Kavak
Sergio Furio, founder and CEO of Creditas
Patrick Sigrist, founder of iFood
Fritz Lanman, CEO of ClassPass.
The 7th one wishes to be unnamed.

Other investors include senior executives from Robinhood, Stripe, Wise, Carta, and Capital One.

Future Goals
The larger goal is to ease the insurance process globally and to make roads safer.

It will use its newly acquired capital to set up operations by partnering with reinsurers.

The product will be offered directly to consumers which will help the startup acquire maximum users in a cheaper manner than its competitors.

The savings made from this method will go back to the consumers in the form of cheaper prices.

Leftover revenue will also be donated to nonprofit organizations.

As of now, the app is not fully open to the public. Only a select few considered to be potential customers are put on a waitlist.

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