The driver’s license startup was right to aim for the most popular exam in France. Since its launch in 2013, it has gone through various crises, seeing its number of new students for the driving license increase, with growth of nearly 30% per month in 2020. A performance for those who present themselves as self-driving. school 2.0.
This Thursday, Ornikar announced a new round of funding for an amount of 100 million euros. The largest to date, registered in series C, will enable it to accelerate its international deployment. After the driver’s license in France and Spain, the French startup launched into auto insurance at the start of the year. According to an estimate from a source of Tech Crunch, Ornikar is expected to have exceeded $ 750 million.
After driving school, here is the insurer
Eight years ago, the launch of Ornikar very quickly found competition in France. Its model, based on cost reduction thanks to the Internet and working with freelance instructors, was the same as that of “En Car Simone” and “Auto-école.net”, its two main rivals.
In a market where the driving license had not yet experienced a digital turn and the prices of lessons and learning of the Highway Code had something to be selective, these driving schools 2.0 were sometimes 40% less dear. It only criticized the quality of student monitoring, while independent monitors could see a student for a single hour rather than during his entire training (minimum 20 hours of driving).
Now these companies have tweaked their service. Their presence in front of traditional establishments has become part of customs and legislation. However, between 2017 and 2019, the demonstrations of traditional brands were numerous, like the struggle of taxis in the face of the arrival of VTCs on the market. Ornikar’s secret boot: to expand its activity into another vertical: auto insurance.
This is how the driving school also became an insurer. To success. The startup says that its income from this new activity is still tiny compared to driving school, but that 80% of its new subscriptions to an insurance contract came from customers who had never used Ornikar before, for their purposes. driver’s license. The insurance market is a cake worth 17 billion euros, and the start-up’s momentum is noteworthy as only the big players are present.
“We have decided to create a new business unit and explore our business as an insuretech” confided Benjamin Gaignault, CEO of Ornikar. “We are delighted to invest behind Benjamin, Flavien and their talented team as they expand internationally and accelerate their insurance offer following the successful launches of Onroad in Spain and Ornikar Assurance”, added the director of KKR who led the fundraising for the startup.