Kin Insurance, a US-based digital home insurer that counts insurance firm CSAA as an investor, agreed a reverse takeover with special purpose acquisition company Omnichannel Acquisition Corp yesterday.
The merged company will take the listing secured by Omnichannel through a $200m initial public offering on the New York Stock Exchange in November 2020.
Hudson Structured Capital Management (HSCM)’s HSCM Bermuda subsidiary is co-leading an $80m private investment in public equity financing with Senator Investment Group at a $1.03bn post-money valuation that includes Gillson Capital, Park West Asset Management and unnamed others, in support of the deal.
Kin uses digital technology to offer customers home insurance through an online platform and markets itself as more affordable, even for those in areas prone to natural disasters. It operates in the US states of Florida, Louisiana and California and now plans to expand geographically.
The company had raised a total of about $150m as of a $63.9m series C round in May this year co-led by Senator Investment Group and HSCM and backed by University of Chicago’s Startup Investment Program, Allegis NL Capital and Alpha Edison.
The series C round came nine months after a $35m series B that was led by Commerce Ventures and which included CSAA unit Avanta Ventures, HSCM, UChicago Startup Investment Program, Flourish Ventures, QED Investors, Alpha Edison, Allegis NL and August Capital.
Avanta Ventures had joined HSCM, UChicago Startup Investment Program and undisclosed others to provide $47m in series A funding for Kin in August 2019. Its earlier backers include August Capital, Commerce Ventures, Omidyar Network, 500 Startups, Chicago Ventures and Portag3 Ventures.
