Pet care has become a booming tech segment, pulling in more than $520 million in VC funding last year alone, according to Crunchbase. And between retailer Chewy’s ongoing growth and the slew of other pet-focused startups garnering investor attention (Bond Vet and Fuzzy, to name a couple), the industry does not appear to be slowing down anytime soon.
Now, Wagmo, a pet wellness and insurance startup based in NYC, is joining the movement with a $12.5 million Series A. Revolution Ventures led the round, which also featured participation from the Female Founders Fund, film producer Jeffrey Katzenberg, and several other leaders across the pet and insurance spaces, including Allstate executive Marilyn Hirsch and former Chewy CFO Jim Grube.
Wagmo was founded by finance veterans Christie Horvath and Alison Foxworth to revolutionize the often expensive, limited and outdated world of pet insurance. The company does this by offering wellness and insurance plans that cover more than just big emergencies like broken bones and cancer treatments, but essential maintenance like grooming and vaccines, too.
Right now, Wagmo is the only provider of its kind to offer wellness and insurance plans separately, which means it can provide more comprehensive coverage for dogs and cats of all ages, breeds and preexisting conditions. Pet parents pay between $20 and $59 a month for Wagmo’s services, and can submit their receipts directly through the app. The company then reimburses what is covered via direct deposit, Venmo or PayPal within 24 hours.
“Currently, only 3 percent of pets are insured due to poor customer experience and outdated offerings from legacy carriers. Yet pets have become an increasingly prominent part of owners’ lives, particularly for younger generations,” Clara Sieg, a partner at Revolution Ventures, said in a statement provided to Built In. She and Graham Ober, a VP at Revolution, will be joining Wagmo’s board of directors. “Wagmo exceeds the expectations of today’s pet parents by offering superior customer experience through its mobile first technology, SMS messaging support, and easy reimbursements through streamlined online payment systems.”
To date, Wagmo says it has processed 30,000 wellness claims, with 20 percent month-over-month user growth since the beginning of the pandemic. To keep up with this growth, the company will use this fresh funding to develop new product features, form new partnerships and scale its team, which Horvath says is what she is most excited about.
“It is a privilege to get to shape and develop a company culture from scratch, and there is nothing more rewarding than building a passionate, diverse team that absolutely crushes it,” Horvath told Built In via email.
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