Central American Auto Insuretch Sostengo Closes on $3.8 Million USD Seed Funding Round

Central American Auto Insuretch Sostengo Closes on $3.8 Million USD Seed Funding Round

Central American insurtech company Sostengo announced that is has raised $3.8 million USD in seed funding and extended the round by an additional $1 million for its expansion into the US market.

Founded in El Salvador in 2021, Sostengo introduced an auto insurance app and has experienced a 103% year-over-year growth in premiums sold, according to the company. Expanding access was the key goal in a region where less than 10% of vehicles are insured and protected.

Sostengo aims to capture this uninsured segment by providing the first customizable, affordable, and user-centric insurance tailored to individual needs.

Through the Sostengo app, users can quote, customize, purchase insurance, report incidents, receive assistance from human agents in emergencies, and complete the payment process. Sostengo’s also seeks to educate its users on viewing insurance as a long-term investment that ensures the physical protection of the driver, their assets, and third parties in the event of unforeseen events.

PeopleFund, a venture capital firm, participated in the round and established a joint venture operation in Guatemala through one of its subsidiaries. “Insurance plans and online marketing run through our DNA,” said Julio Gonzalez Arrivillaga, co-founder of PeopleFund. “I am satisfied with the path and business decisions made by Sostengo, which convinced me to invest and close the round.”

Sostengo not only operates in Central America but is working to expand accessibility to the region as well as the Hispanic population in the United States.

“We are excited to continue evolving the industry and position ourselves as pioneers in the digitalization of insurance in the region,” said Estuardo Escobar, CEO of Sostengo. “This new funding round will not only allow us to continue growing in Central America but also introduce our tailored solution to U.S. Hispanics, jointly with key investors and industry experts by our side.”

Photo: Sostengo co-founders Estuardo Escobar and Daniel Butz. (Credit: Sostengo)

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