Sostengo
Digitalizes the traditional insurance business in LATAM with a customer-centric approach.
| Date | Investors | Amount | Round |
|---|---|---|---|
| N/A | €0.0 | round | |
| N/A | €0.0 | round | |
* | $3.8m | Seed | |
| Total Funding | 000k | ||
| USD | 2022 | 2023 |
|---|---|---|
| Revenues | 0000 | 0000 |
| % growth | - | 134 % |
| EBITDA | 0000 | 0000 |
| Profit | 0000 | 0000 |
| EV | 0000 | 0000 |
| EV / revenue | 00.0x | 00.0x |
| EV / EBITDA | 00.0x | 00.0x |
| R&D budget | 0000 | 0000 |
Source: Dealroom estimates
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Sostengo, a digital insurance provider, was established in 2021 in San Salvador, El Salvador, by co-founders Estuardo Escobar and Daniel Butz. Escobar, the CEO, is a seasoned tech entrepreneur and angel investor with a background in insurtech, fintech, and micromobility, while Butz serves as the CFO. The founders identified an opportunity during the 2020 pandemic to address the digital gap in the traditional insurance industry.
The company is strategically focused on the Latin American market, a region characterized by low insurance penetration, with less than 10% of vehicles being insured. Sostengo targets this underserved segment by offering accessible and affordable auto insurance through a fully digital platform. The business operates a direct-to-consumer model via a mobile application, which allows users to quote, customize, purchase, and manage their insurance policies entirely on their smartphones. This self-service model simplifies traditionally bureaucratic processes, making insurance more approachable for a younger, digitally native demographic. Notably, the platform has enabled 70% of its users to acquire car insurance for the first time.
Sostengo’s core offering is a customizable auto insurance product. Through the app, clients can not only purchase and manage their policies but also report incidents, receive emergency assistance from human agents, and handle payments. Beyond providing coverage, the company aims to educate its user base on the long-term value of insurance as a tool for financial protection. Since its launch, Sostengo has reported a 103% year-over-year growth in premiums sold. The firm secured $3.8 million in a seed funding round in March 2024, with participation from venture capital firm PeopleFund. These funds are earmarked for continued growth in Central America, with an additional $1 million allocated for a strategic expansion into the U.S. Hispanic market.
Keywords: insurtech, auto insurance, digital insurance, LATAM market, mobile application, financial services, seed funding, customer-centric, market expansion, underserved markets