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Obi has raised $25.5 million in funding led by Battery Ventures, a real estate-focused insurance technology company.
Since the company’s last raise – Series A $10.4 million – About two years ago, the startup said it had gone from insuring assets worth more than $3 billion to $20 billion. Now, since 2017, it has collected a total of 39 million dollars.
OB Software specifically targets small to mid-sized apartment owners with single-family rentals and/or large apartment buildings.
Chicago-based and Y Combinator graduate Obi says the platform stands out because it offers quick quotes (instant, meaning within five minutes). The company also claims to save policyholders up to 25-30% compared to other insurance premiums.
While the startup declined to share valuations, COO and co-founder Aaron Lezzer said Obi “achieved a significant increase in valuation” from its 2021 Series A round.
“Our team has pioneered an integrable solution that integrates insurance offerings with our partner channels, including a place for a real estate investor to manage their investment properties online,” said CEO and Co-Founder Ryan Lezzer.
OB says it has “thousands of customers” and now partners with more than 75 proptech companies that provide insurance such as Roof Stock, Flock Homes, Baselane, Awning and Marketplace Homes. There has been a 300% growth in written premiums in the past two years, Aaron Letizer said.
Image Credits: Obi
In the past year, the company has increased its profit margin by 40 percent and is on track to improve it to 25 percent by the end of 2023.
“Our bread and butter is the 1-4 single family rental market and we cover all 50 states,” added Aaron. “There are more than 18 million residential real estate investors in America, and more than 90% of them are small ‘mom and pop’ investors who spend more than $60 billion a year in insurance premiums, so OB has a lot of room to run here. He said.
“He believes there are very few digital competitors to OB, because renters insurance is a unique, unique insurance product,” said Michael Brown, general partner at Battery Ventures.
He wrote in an email: “OB’s focus on this market – and its superior use of data, proprietary risk-management tools and embedded industry partnerships – has allowed it to develop a unique system for generating the fastest, most competitive quotes that landlords can get. Where you are buying or managing assets such as through a broker portal or their own asset management system. We feel OB is well on its way to building a valuable, next-generation, digital homeowner-insurance brand.
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