The start of the driving license was rightly aimed at the most popular test in France. Since its launch in 2013, the company has gone through various crises, increasing the number of new students for the driver’s license with a growth of nearly 30% per month in 2020. A service for those who present themselves as a self-driving school 2.0.
This Thursday, Ornikar announced a new financing round of 100 million euros. With the largest to date, registered in Series C, the company can accelerate its international deployment. After gaining a driver’s license in France and Spain, the French startup started car insurance at the beginning of the year. According to an estimate by a source at Tech Crunch, Ornikar should have exceeded $ 750 million.
After driving school, this is where the insurer is
Eight years ago, Ornikar’s start in France quickly found competition. The model, based on cost reduction thanks to the Internet and collaboration with freelance trainers, was the same as that of “En Car Simone” and “Auto-école.net”, the two main competitors.
In a market where the driver’s license had not yet experienced a digital turnaround and the prices for tuition and learning the road traffic regulations were selective, these driving schools 2.0 were sometimes 40% less expensive. Only the quality of student surveillance was criticized, while independent observers could see a student for a single hour rather than during their entire education (at least 20 hours of driving).
Now these companies have optimized their service. Their presence in front of traditional institutions has become part of customs and legislation. However, between 2017 and 2019 there were numerous demonstrations of traditional brands, such as the battle of the taxis in the face of the introduction of VTCs on the market. Ornikar’s secret boot: to expand his activity to another branch: car insurance.
So the driving school also became an insurer. To be successful. The startup says its income from this new activity is still small compared to driving school, but that 80% of its new subscriptions to an insurance contract came from customers who had never used Ornikar for their purposes before. Driver’s license. The insurance market is a pie worth 17 billion euros and the start-up’s dynamism is remarkable with only the big players in attendance.
“We have decided to create a new business unit and explore our company as an insurer,” said Benjamin Gaignault, CEO of Ornikar. “We are very excited to invest behind Benjamin, Flavien and their talented team as they expand internationally and accelerate their insurance offerings after the successful launches of Onroad in Spain and Ornikar Assurance,” added the director of KKR, who initiated the fundraiser for the Startup headed.